FTC to pay Cleo AI users more than $15.8 million — The Hill

In the United States, the Federal Trade Commission (FTC) will distribute more than $15.8 million to over 2.1 million users of the Cleo AI cash advance app. The payments are linked to a settlement of the regulator’s claims over the company’s misleading statements about the amounts and timing of advances, as well as subscriptions that were difficult to cancel.

Regulator’s claims

As The Hill reports, in a complaint filed last year, the FTC alleged that Cleo misled customers about how quickly they could access funds and the amount of an advance. According to the agency, the service told users they could receive “hundreds of dollars,” although almost no one received amounts close to those advertised.

The FTC also accused Cleo of hidden fees for same-day or instant advances. At the same time, such transfers, according to the regulator, often arrived only the following day. In March, Cleo agreed to pay $17 million to settle the claims without admitting wrongdoing.

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Who will receive the funds

Payments are expected to be received by 2,124,796 Cleo AI customers who paid for the relevant instant advances. Users should receive an email from [email protected] by October 26 if they have not yet received such a notification.

The FTC plans to begin sending payments through PayPal from October 27. The regulator urged recipients to activate their payment within 30 days. The exact amount of individual compensation was not specified, but if more than $15.8 million were distributed equally among all recipients, it would amount to slightly less than $7.50.