The Federal Trade Commission 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.

FTC Alleges Misleading Cash Advance Claims

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.

2.1 Million Cleo AI Users Eligible for Refunds

The refund program will cover 2,124,796 customers who paid for eligible instant cash advances.

Eligible consumers will receive email notifications from [email protected] 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.

Read Also: Mark Cuban's Worst Shark Tank Investment Was A Product Where The FTC Forced Refunds And Founder Partied In Bora Bora: 'My Biggest Beating'

FTC Refunds Consumers After Corporate Settlements

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 Benzinga editors.

Read Also: Amazon Is Sending Automatic Refunds To Millions After Record $2.5 Billion FTC Settlement: Here's What You Must Do To Claim Yours

Photo Courtesy: Mark Van Scyoc on Shutterstock.com