WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) announced today that it has significantly amended a previous enforcement action against Wise, the global fintech company known for its international money transfer services. The new order reduces Wise’s civil penalty from over $2 million to just $45,000, citing changes in policy, legal precedent, and the company’s cooperation.
The original January 2025 consent order alleged that Wise misled U.S. customers by advertising inaccurate ATM fees, failed to clearly disclose exchange rates and costs, and didn’t issue timely refunds when remittances were delayed — all violations of federal consumer protection laws.
But in a dramatic shift, the CFPB’s May 15 amended consent order not only lowers the penalty but also reframes the company’s obligations to match new regulatory priorities under Executive Order 14219, signed in February 2025. That order, alongside the CFPB’s rescission of prior guidance on deceptive remittance marketing, played a key role in the agency’s decision to revise Wise’s penalties.
A Case of Changing Rules
Under the initial order, Wise was required to:
Pay $450,000 in consumer redress for overcharging more than 16,000 U.S. customers on its prepaid card product.
Pay $2.025 million in civil penalties to the CFPB’s victims relief fund.
Today’s amended order maintains the consumer redress but reduces the civil penalty to just $45,000, aligning the punishment with new CFPB enforcement standards and recognizing Wise’s “good faith cooperation.”
“This amended order reflects both Wise’s steps to correct past practices and the Bureau’s evolving approach to enforcement,” a CFPB spokesperson said in a statement.
What Went Wrong?
Wise, formerly known as TransferWise, is a publicly traded British company with over three million U.S. customers. The CFPB found that it:
- Failed to accurately disclose international transfer costs and exchange rates.
- Did not provide timely refunds when transfers were delayed.
- Misrepresented ATM fees connected to its debit and prepaid card offerings.
Although Wise does not operate any physical branches in the U.S., its mobile-first approach has made it one of the most prominent players in the global remittance space. The company offers U.S. consumers three main services: international money transfers via app, a multi-currency prepaid account, and a debit card for global spending.
The CFPB’s amended order marks a notable de-escalation in its enforcement stance toward remittance providers. The Bureau cited a recent rescission of Consumer Financial Protection Circular 2024-02, which had warned companies about deceptive claims regarding the speed and cost of remittances. That rollback, paired with Executive Order 14219’s call for a more nuanced regulatory environment, appears to have opened the door for reduced penalties in cases where companies demonstrate compliance and cooperation.
What’s Next for Consumers?
Despite the reduction in the fine, Wise is still on the hook to pay back hundreds of thousands of dollars to affected customers. CFPB officials say consumers who were overcharged will be contacted directly or can file claims to seek restitution.
For users of Wise’s platform, the case highlights the importance of scrutinizing the fine print—especially when transferring money across borders. And for financial firms, the amended order may signal a new CFPB focus: incentivizing compliance through collaboration, not just punishment.
Bottom line: The CFPB’s softened stance reflects a broader regulatory pivot—but for consumers, transparency in fees and refunds remains a top priority.
