WASHINGTON, D.C. — The Federal Trade Commission will distribute more than $15.8 million to approximately 2.1 million Cleo AI customers following allegations that the cash advance app misrepresented borrowing amounts, charged undisclosed fees for expedited payments and made subscriptions difficult to cancel.
The refunds stem from a March 2025 FTC complaint accusing Cleo AI of misleading consumers about how much money they could borrow and how quickly they could receive it.
According to the agency, Cleo advertised access to “hundreds of dollars” in cash advances, although almost no customers received amounts approaching those advertised.
The FTC also alleged that Cleo imposed additional fees for same-day or instant cash advances without adequately disclosing those charges.
Customers who paid for expedited access frequently did not receive their money until the following day, according to the complaint.
The agency further accused Cleo of creating obstacles for customers attempting to cancel their paid subscriptions.
The allegations centered on the company’s representations to consumers seeking short-term access to cash, including the availability, cost, and delivery timing of advances.
The FTC plans to issue payments to 2,124,796 customers who paid for eligible instant cash advances.
Eligible consumers will receive email notifications by October 26, 2026, informing them of their refunds.
The agency will begin distributing payments through PayPal on October 27. Recipients must redeem their payments within 30 days.
The distribution represents a financial recovery for customers affected by the practices identified in the FTC’s complaint, including charges associated with expedited advances that did not arrive as quickly as advertised.
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