More than 2.1 million customers of cash-advance app Cleo AI are set to receive refunds from the US Federal Trade Commission (FTC) beginning October 27, after regulators accused the company of misleading users about how much money they could borrow, how quickly funds would arrive, and how easy it was to cancel subscriptions. The FTC said it is returning more than $15.8 million to 2,124,796 consumers who paid for eligible instant cash advances through the app. The refunds stem from a $17 million settlement reached in 2025 following a lawsuit filed by the agency against Cleo AI. Payments will be distributed through PayPal starting October 27.
The refunds stem from a complaint the FTC filed in March 2025. The FTC’s announcement refers to the case in connection with a $17 million payment by the company that settled the lawsuit, and the refunds come from that money. The refund administrator, Rust Consulting, Inc., is handling the process and can be reached at 877-788-4958 for questions about a payment. Consumers eligible for payment are being notified via email between October 8 and October 26, with PayPal payments beginning October 27. Recipients will have 30 days to accept the payment once it is issued. The refund programme follows a settlement agreement under which Cleo AI agreed to pay $17 million.
It alleged that Cleo AI misled consumers with promises of fast money, advertising access to “hundreds of dollars” in cash advances when almost no one received anything close to the advertised amounts. The FTC says it will never demand money, make threats, tell you to transfer money or promise you a prize, and consumers can report suspected scams at ReportFraud.ftc.gov. The FTC said eligible customers have been identified using company records and do not need to submit a claim to receive a refund. The company did not admit wrongdoing as part of the settlement, according to reports. The firm’s general counsel previously said the FTC’s claims were inaccurate and reflected a misunderstanding of the business.
The agency also alleged that the company charged hidden fees for same-day or instant cash advances that often did not arrive until the next day, and that it made cancelling subscriptions difficult. Eligible consumers do not need to apply. The FTC also points consumers to the frequently asked questions on its refund programme page. The agency stressed that it never requires people to pay money or provide account information to receive a payment, so anyone who is asked to do either should be wary. The agency noted that simply downloading the app or subscribing to a service does not automatically qualify a person for compensation. Only customers who paid for eligible instant cash advances are included in the refund programme. You use AI every day. Now get your AI Quotient. Take the AIQ test.