CFPB Fines Wise Amid Uncertain Future as New Leadership Halts Agency’s Work

The U.S. arm of London-based foreign exchange company Wise has been fined by the Consumer Financial Protection Bureau (CFPB) in what may be one of the agency’s last enforcement actions. A new regulatory landscape has reportedly put a freeze on rules and litigation, as discussions continue around potential defunding of the agency.

Wise has been accused of misleading consumers about fees for its money transfer services, failing to disclose exchange rates and other costs accurately, and not providing refunds within the legally required timeframe. As part of the settlement, the company will pay approximately $450,000 in redress to affected customers and more than $2 million in civil money penalties.

CFPB Director Rohit Chopra, in his final move before stepping down on Saturday, asserted that Wise unfairly positioned itself ahead of competitors in the remittances market. “New technology can help make money transfers cheaper and more convenient, but companies must be truthful and live up to longstanding law,” Chopra stated in a press release issued Thursday.

Stepping into the role of acting director, U.S. Treasury Department Secretary Scott Bessent has already taken decisive action regarding the agency’s operations. “I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth,” Bessent said in a statement Monday. According to Bloomberg Law, one of his first moves was to shut down most of the agency’s ongoing work upon assuming control.

The future of the CFPB has been in limbo since President Donald Trump’s re-election. However, the agency narrowly avoided defunding in May when the Supreme Court upheld its funding structure as constitutional. Nevertheless, discussions about curtailing its authority have persisted, with Republican lawmakers working to limit the bureau’s influence since November, The Washington Post reported.

Sen. Ted Cruz (R-Texas) introduced legislation Wednesday to dismantle the agency entirely. “The CFPB is an unelected, unaccountable bureaucratic agency that has imposed burdensome and harmful regulations on American businesses, banks, and credit unions,” Cruz said in a press release. “It is an unchecked Obama-era executive arm and the Federal Reserve should not be transferring funds to it. Enacting this legislation would save American taxpayers billions of dollars and I call on the Senate to expeditiously take it up and pass it.”

Several Republican senators have joined Cruz in co-sponsoring the bill, including John Barrasso (R-Wyo.), Rick Scott (R-Fla.), Steve Daines (R-Mont.), Marsha Blackburn (R-Tenn.), Mike Rounds (R-S.D.), and Mike Lee (R-Utah). Meanwhile, Rep. Keith Self (R-Texas-03) introduced a companion bill in the House of Representatives on Thursday.

As the debate over the CFPB’s future intensifies, its ability to regulate financial institutions and enforce consumer protections remains uncertain under the new leadership and potential legislative efforts to limit or eliminate the agency.

By fLEXI tEAM