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The Consumer Financial Protection Bureau (CFPB) has hit UK-based remittance company Wise<\/a> with about a $2 million fine<\/a> for what it described as \u201ca series of illegal actions.\u201d<\/p>\n Those actions include advertising inaccurate fees and failing to properly disclose exchange rates and other costs, the CFPB alleges. Specifically, the agency claims that the fintech company misled customers in the United States about its ATM fees and failed to properly disclose other fees. It also alleges that when people sent money that did not arrive on time, Wise failed to refund the remittance fees in the timeframe required by law. This led to \u201chundreds of thousands of dollars\u201d in harm to consumers, charged the CFPB.<\/p>\n The agency has ordered publicly-traded Wise<\/a> to pay about $450,000 in redress to harmed consumers and a $2.025 million civil money penalty.\u00a0<\/p>\n \u201cBy deceiving customers, Wise gave itself an unfair advantage over other competitors in the remittances market,\u201d said CFPB Director Rohit Chopra in a written statement. \u201cNew technology can help make money transfers cheaper and more convenient, but companies must be truthful and live up to longstanding law.\u201d<\/p>\n The company does business in the US through a wholly owned subsidiary, Wise US. It recently announced an expansion into Mexico<\/a>.<\/p>\n In a statement provided to TechCrunch, a Wise spokesperson said the CFPB had conducted between June 2020 and May 2021 a \u201croutine examination of Wise US Inc. for compliance with various US laws pertaining to financial providers.\u201d<\/p>\n The CFPB then in February 2022 highlighted certain issues where Wise claims it had \u201cinadvertently been operating in ways the Bureau deemed necessary to address.\u201d \u00a0<\/p>\n Wise said that it \u201cproactively and voluntarily compensated in full,\u201d the affected customers a total of $450,000. It also says that it \u201ccooperated fully with the CFPB and immediately worked to address all identified issues,\u201d with the majority resolved by November 2022.<\/p>\n The company said that it reached an agreement with the Bureau on January 30, adding: \u201cAt Wise, we continuously invest in our compliance program and processes to ensure we maintain a robust framework, including in the US, where we have strengthened our teams and built substantial tooling.\u201d<\/p>\n This is the latest example of fintech companies being fined for deceptive practices. Block, the parent company of Cash App, recently agreed to pay an $80 million fine<\/a> as part of a settlement related to violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations.<\/p>\n Want more fintech news in your inbox? Sign up for TechCrunch Fintech\u00a0<\/em>here<\/em><\/a>.<\/em><\/p>\n Want to reach out with a tip? Email me at\u00a0maryann@techcrunch.com<\/a>\u00a0or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at\u00a0tips@techcrunch.com<\/a>. For more secure communications,\u00a0<\/em>click here to contact us<\/em><\/a>, which includes SecureDrop and links to encrypted messaging apps.<\/em><\/p>\n<\/div>\n