FTC sending $15.8 million to Cleo cash advance app users

Federal regulators will distribute over $15.8 million nationwide following an action against cash advance app operator Cleo AI. More than 2.1 million consumers harmed by misleading claims and subscription practices are expected to get payments.

The Federal Trade Commission announced the payments last week. The funds resolve claims over cash advance terms and hard-to-cancel subscriptions.

The action stems from a complaint filed last year. The agency alleged Cleo AI misled customers about advance amounts and transfer speeds.

The agency said Cleo promised rapid access to funds. It alleged Cleo offered advances of hundreds of dollars when almost no user received that much.

Cleo was also accused of charging hidden fees for instant transfers. Advances often took until the next day instead. The company allegedly made subscription cancellations difficult.

In March, Cleo agreed to pay $17 million to settle the case. Cleo did not admit any wrongdoing under the settlement.

The agency will send payments to 2,124,796 consumers nationwide. Eligible users who paid for instant advances should receive an email from [email protected] by Oct. 26.

PayPal disbursements will begin on Oct. 27, the agency said. Recipients must redeem these transfers within 30 days. Payments could average under $7.50 each.

The Federal Trade Commission enforces federal consumer protection laws. It returns recovered funds to affected consumers after corporate settlements. Recipients receive notices through verified contact channels.

Eligible account holders nationwide should monitor their email inboxes for official payment instructions.