More than 2.1 million customers of cash advance app Cleo AI are eligible to receive payments from the Federal Trade Commission after the agency accused the company of misleading consumers about how much money they could borrow and how quickly they would receive it.
The refunds stem from a March 2025 lawsuit that accused Cleo of advertising cash advances that few customers received in the amounts promised, charging extra fees for faster delivery and making subscriptions difficult to cancel. Cleo agreed to pay $17 million to settle the allegations. Under the settlement order, the company was required to pay that amount to the FTC, and court records show the money was held in escrow for that purpose.
The FTC announced Oct. 8 that it would distribute
more than $15.8 million to customers who paid for eligible instant cash advances through the app. Payments are scheduled to begin Oct. 27, 2026.
Why is the FTC refunding Cleo AI customers?
The FTC alleged that Cleo advertised access to hundreds of dollars in cash advances, but almost no customers received amounts close to what the company promoted.
According to Reuters, the agency said Cleo advertised maximum advances of $250 and $500 for its Cleo Plus and Cleo Builder subscription services. Some customers received as little as $20.
The complaint also alleged that customers paid additional fees for advances advertised as instant or available the same day, only to wait until the next day or longer for their money.
Cleo was also accused of making cancellations difficult. According to the FTC, some customers were told they could not cancel their subscriptions until they repaid outstanding advances, while monthly subscription fees continued despite requests to cancel.
Cleo denied wrongdoing in agreeing to the settlement. Its general counsel, Colin Jones, told Reuters in March 2025 that the FTC's claims were inaccurate and reflected a misunderstanding of the company's business.
Who is eligible for a Cleo AI refund?
The FTC plans to send payments to 2,124,796 customers who paid for eligible instant cash advances. Simply having downloaded the app or subscribed to its services does not necessarily qualify someone for a payment.
The agency has not announced a fixed amount for each recipient. Dividing the $15.8 million fund equally among eligible customers would amount to about $7.43 per person, but that is only an estimate, not a confirmed payment amount.
How will the FTC distribute Cleo AI refunds?
The $15.8 million refund program follows a $17 million settlement that Cleo agreed to pay in 2025. The court's order required Cleo to pay the settlement amount to the FTC, with court records showing the money was held in escrow pending payment to the agency. The FTC generally distributes refunds after legal proceedings are complete and it has collected the money from the defendants.
Rather than requiring each customer to file a claim, the agency is sending payments directly to eligible consumers.
Eligible consumers will receive an email notification between Oct. 8 and Oct. 26, 2026, from no-reply@consumersentinel.gov, according to the FTC's refund website.
PayPal payments are scheduled to begin Oct. 27. Recipients must accept their payments within 30 days.
Consumers with questions can contact refund administrator Rust Consulting Inc. at 877-788-4958.
The FTC warns that it never requires consumers to pay a fee or provide financial account information to receive a refund. Consumers should be wary of anyone requesting money in exchange for a payment.
Contributing: Reuters
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com, or on X @athompsonUSAT.
This article originally appeared on USA TODAY: FTC to refund money to 2.1 million Cleo AI customers after lawsuit
