Here's a fun thing about cash advance apps: the money is supposed to arrive fast. That's the whole pitch. So when the Federal Trade Commission says an app advertised "hundreds of dollars" in advances that almost nobody actually got, and charged extra for same-day cash that showed up the following day, you can see why regulators got interested.
The FTC announced last week that it is distributing more than $15.8 million to eligible Cleo AI customers following allegations that the cash advance app misled users about available funds, payment timing, and subscription cancellations.
What The FTC Says Cleo Did
In March 2025, the FTC announced the refunds last week after Cleo AI agreed to pay $17 million to settle allegations that it deceived consumers.
The agency alleged that Cleo advertised access to "hundreds of dollars" in cash advances, although "almost no one received even close to the advertised amounts."
The company was also accused of charging additional fees for same-day or instant cash advances that often arrived the following day.
The FTC further alleged that Cleo made it difficult for customers to cancel subscriptions.
Who Gets Paid, And When
The refund program will cover 2,124,796 customers who paid for eligible instant cash advances.
Eligible consumers will receive email notifications from no-reply@consumersentinel.gov by Oct. 26, 2026, and PayPal payments will begin Oct. 27. Recipients must redeem their payments within 30 days.
Consumers with questions can contact refund administrator Rust Consulting Inc. at 877-788-4958 or visit the FTC's website for information about the refund process.
The FTC warned that it never requires consumers to pay money or provide account information to receive refunds.
The FTC Has Done This Before
Earlier this year, the FTC refunded more than $47.2 million to over 444,000 renters who paid hidden or unfair fees to Invitation Homes Inc (NYSE: INVH).
The company agreed to a $48 million settlement in 2024 over allegations of misleading lease costs and unfair security deposit deductions, without admitting wrongdoing.
In 2017, the FTC mailed checks to nearly 350,000 people who lost money operating Herbalife Ltd. (NYSE: HLF) businesses.
The payments followed a 2016 settlement requiring the company to pay $200 million and restructure its multilevel marketing operations over allegations of deceptive earnings claims.
Most eligible recipients received refunds ranging from $100 to $500.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
