FTC Distributes $15.8 Million to Cleo App Users

The Federal Trade Commission is distributing more than $15.8 million to over 2.1 million users of the AI-based cash advance app Cleo. The payments follow a March settlement in which Cleo agreed to pay $17 million to resolve allegations that it misled customers about the timing and amount of available cash advances and used subscriptions that were difficult to cancel.

The agency alleged that Cleo claimed users could access "hundreds of dollars" when few actually received such amounts. Additionally, the FTC claimed the company charged hidden fees for instant advances that often took until the next day to process.

Eligible users who paid for instant cash advances are expected to receive notification emails by October 26, with PayPal payments beginning October 27. Cleo did not admit any wrongdoing as part of the settlement.