Business & Finance
FTC to Distribute $15.8 Million in Refunds to Over 2.1 Million Cleo AI Users
The U.S. Federal Trade Commission (FTC) will begin paying refunds to more than 2.1 million customers of the cash‑advance app Cleo AI on October 27. The payments, totaling more than $15.8 million, come from a $17 million settlement reached in 2025 after the FTC sued the company. The agency alleged that Cleo AI misled users about the amount of money they could borrow, the speed of fund delivery, and the ease of canceling subscriptions. It also claimed the app charged hidden fees for same‑day or instant cash advances that often did not arrive until the next day.
Eligible consumers will receive payments through PayPal; no application is required. The refund administrator, Rust Consulting, Inc., can be contacted at 877‑788‑4958 for questions. The FTC has emphasized that it never asks for money or account information to issue a refund and that anyone who is asked to do so should be wary of scams.
Customers who paid for eligible instant cash advances will be notified by email between October 8 and October 26. Once the payment is issued on October 27, recipients have 30 days to accept it. The FTC clarified that simply downloading the app or subscribing does not automatically qualify a person for compensation.
Cleo AI settled the lawsuit without admitting wrongdoing. The company’s general counsel stated that the FTC’s claims were inaccurate and reflected a misunderstanding of its business.
Frequently asked questions
When will the FTC start issuing refunds to Cleo AI users?
The FTC will begin paying refunds on October 27.
How can eligible customers receive their refunds?
Refunds will be sent through PayPal; no application is required.
Who administers the refund program and how can I contact them?
The refund administrator is Rust Consulting, Inc., and can be reached at 877‑788‑4958.