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FTC Orders $15.8 Million Refund to Users of Cleo AI Cash-Advance App
By Drooid · · How we work
FTC Announces Refund Plan
On Oct. 8, 2026, the U.S. Federal Trade Commission (FTC) announced that it will return more than $15.8 million to consumers who used the AI-driven cash-advance app Cleo. The order, issued on Oct. 10, 2026, targets 2,124,796 customers who paid for “eligible instant cash advances.”
Background of the FTC Complaint
The FTC filed a complaint in March 2025 alleging that Cleo AI misled users about both the speed and amount of cash advances. The agency claimed the company advertised “access to ‘hundreds of dollars’” while most users received far less, and that hidden fees were charged for same-day advances that often arrived the next day. The complaint also said Cleo made it difficult for users to cancel subscriptions.
Settlement Figures and Refund Distribution
Cleo AI agreed in March 2026 to a $17 million settlement without admitting wrongdoing. Under the FTC’s refund plan, the $15.8 million pool will be divided among the eligible users. If the total amount is split evenly, each consumer could receive just under $7.50. Payments will be sent via email notifications, with subsequent PayPal transfers scheduled for later in October.
Official Response and Consumer Impact
The agency also required the company to provide clear disclosures, obtain express consent before charging for subscriptions, and offer a simple cancellation method.
Next Steps for Affected Users
Eligible users will receive an email from a government-issued address in late October. The FTC advises recipients to redeem the payment within 30 days of receipt. Consumers who believe they qualify but do not receive a notification are instructed to contact the FTC’s consumer-help line for assistance.