FTC sending $15.8 million to customers of cash advance app Cleo

Federal regulators are returning money to nationwide users deceived by financial app Cleo AI, officials announced. Affected consumers will share more than $15.8 million through direct online repayments. The enforcement agency targeted deceptive claims regarding advance amounts, timing, and hard-to-cancel subscriptions.

In a complaint filed last year, the agency alleged the company misled customers about service speeds. Cleo AI suggested borrowers could get hundreds of dollars in advances, the agency said. Officials stated almost no one received close to those amounts.

The company faced further accusations of charging hidden fees for instant transfers. Advances often took until the next day instead. The business also made subscription cancellation difficult, according to the complaint.

In March, the company agreed to pay $17 million to settle the allegations. It did not admit any wrongdoing. The agreement resolves the federal action nationwide.

More than 2.1 million customers are expected to receive disbursements. Eligible recipients paid for instant cash advances. Notices will come from [email protected] by Oct. 26.

PayPal payments will follow starting on Oct. 27, the agency said. Recipients must redeem funds within 30 days. Payments total 2,124,796 across the nation.

The agency did not state exact individual amounts. Equal division of the total fund would yield just under $7.50 per person.

Federal trade regulators enforce consumer protection laws against deceptive business practices. The commission returns recovered funds to consumers affected by deceptive business practices.

Customers should monitor their email accounts for official notices from federal administrators.