CFPB warns providers to stop junk fees on international money transfers
junk fees
CFPB
If you’ve ever sent money abroad, you’ll probably have seen ‘low’ or ‘no fees’ advertised, but then paid more and / or received less than what you expected. That’s because banks and providers often hide fees. One sneaky way they do this is by giving you a worse exchange rate than the one you find on Google and making good money off the margin.
This has been common industry practice, and hardworking Americans have paid the price: U.S. consumers lost $15.4 billion in exchange rate markups over the last three years alone.
Calling for more action: The state of transparency in Australia
Remittances
Transparency
UN Sustainable Development Goal
ACCC
Australia
Australian consumers and businesses have lost billions in hidden fees over the past decade. This has to stop.
Sending money abroad is a big deal for many Australians. You might be supporting your family, planning your next adventure, or expanding your business. But two-thirds of Australians are still unaware of what they're actually paying to send, spend, or receive money internationally and only 15% of Australians bother to even shop around for the best deal.
Calling for more action: The state of transparency in the UK
UK
Did you know that British consumers and businesses paid a staggering £5.6 billion in 2022 alone just by sending and spending money abroad? The main culprit? Hidden fees in exchange rates. But here's the good news: we're fighting to change that. Let's help make price transparency the norm and change the law.
The Cross Border Payments Regulation (CBPR2) aims to end hidden fees and finally force banks and other providers to disclose exactly what it costs for you to send money cross-border in the EU.
But Belgian banks still aren’t playing by the rules. And most consumers aren’t aware of their rights to transparent fees, so the law isn’t being enforced.
Do you have a Belgian bank account? Or know someone who does? Follow these next steps:
Click here to submit a complaint to Meldpunt
The British public lost £5.6 billion in a single year when sending or spending money abroad.
CBPR2
UK
Remittances
Transparency
UN Sustainable Development Goal
The British public lost £5.6 billion in a single year when sending or spending money abroad. Even worse, they were totally unaware of it.
The problem is simple: banks and foreign exchange providers can currently bury hidden costs in the exchange rate offered to individuals and small businesses. They do this by offering their customers a significantly inferior exchange rate than the ‘real’ exchange rate at the time - the so-called ‘mid market rate’ - and pocketing the difference, all the while advertising their service as ‘no fee’ or ‘0% commission’.
Wise was founded in 2010 with the belief that international finance should be more fair and transparent. A decade later, we’re expanding the movement with Nothing To Hide.
New EU initiative to reduce the cost of remittances announced
The European Union proposed action to cut the cost of remittances and deliver on the United Nations Sustainable Development Goals in their Consultation on a retail payments strategy for the EU. This must be delivered, and the Nothing to Hide Foundation community will make sure that this happens.
Global leaders focus on financial inclusion in 2020
davos
financial inclusion
UN SDG 10.c
Last week global leaders gathered for their annual summit in Switzerland. They agreed that fintech and financial inclusion is key to meeting the UN’s Sustainable Development Goals by 2030.
CBPR2, whatcha-who?
Just before Christmas you may have been sent a message from your bank saying they won’t be charging you for making euro payments from non-euro countries like the UK. That there’s no longer a fee for making a payment in Europe. (They’re still planning on charging you for non-euro payments outside the EU…)
French Consumer Organisation UFC-Que Choisir challenges Western Union and MoneyGram
Consumers
legal action
The French consumer organisation UFC-Que Choisir filed a formal complaint against US money transfer giants Western Union and MoneyGram, citing their deceptive pricing and high hidden costs.
