FTC Sending $15.8 Million in Refunds to 2.1 Million Cleo AI Cash Advance App Users: How to Tell If You’re Getting One

October 8, 2026
Posted by AmyGinsburg

If you ever paid a cash advance app for “instant” money that didn’t show up instantly, or for an advance that turned out to be far smaller than the ad promised, you may have money coming. On October 8, 2026, the Federal Trade Commission announced it is sending more than $15.8 million to 2,124,796 customers of Cleo AI, a popular cash advance app, who paid for eligible instant cash advances.

The refunds come from a $17 million settlement Cleo agreed to in March 2025 to resolve an FTC lawsuit filed in federal court in Manhattan (FTC v. Cleo AI, Inc., S.D.N.Y. No. 1:25-cv-02594). The case was resolved by a settlement order, not a trial, so no court decided whether the FTC’s allegations were true.

What the FTC said Cleo did

According to the FTC’s complaint, Cleo advertised cash advances of “hundreds of dollars,” including a “$250 spot,” and promised money “today” or “instantly.” To get an advance, users had to sign up for a paid monthly subscription: Cleo Plus at $5.99 a month or Cleo Builder at $14.99 a month. The FTC alleged that:

Almost no one got the advertised amount. First-time users were capped at $100. The FTC said that only 0.3% of Plus customers who got an advance ever qualified for the advertised $250, and no Builder customer got the advertised $500.
The real amount came after you paid. Users typically learned how much they could actually borrow only after they had subscribed and handed over their billing information.
“Instant” cost extra and often wasn’t. Same-day delivery required an added express fee, and even after paying it, some customers waited until the next day or longer.
Cancelling was hard or impossible. Customers with an outstanding advance were told they couldn’t cancel until it was repaid, so monthly fees kept coming out of their accounts.

The FTC brought the case under the FTC Act’s ban on deceptive practices and the Restore Online Shoppers’ Confidence Act (ROSCA). ROSCA requires online sellers that use automatic renewals to clearly disclose the terms, get the customer’s express informed consent before charging, and provide a simple way to cancel. Under the settlement, Cleo is barred from misrepresenting how much money users can get and what it costs, and must offer a simple cancellation method.

How the refunds work

Who qualifies: Cleo customers who paid for eligible instant cash advances. You don’t need to file a claim. The FTC identified eligible customers from the company’s records.
Watch your email: Eligible customers will get an email from no-reply@consumersentinel.gov between October 8 and October 26, 2026.
Payment by PayPal: The FTC will start sending PayPal payments on October 27, 2026. You must accept the payment within 30 days or you may lose it.
How much: The FTC hasn’t announced individual amounts. Dividing $15.8 million by 2.1 million payments works out to roughly $7 to $8 on average (our calculation). Your amount may be higher or lower.
Questions: Call the refund administrator, Rust Consulting, at 1-877-788-4958, or see the FTC’s Cleo AI refunds page.

Don’t fall for a refund scam

Whenever a big refund program is in the news, scammers follow. The FTC never asks you to pay a fee, share a bank password, or “verify” an account to receive a refund. If someone calls, texts or emails offering to help you get your Cleo money for a fee, it’s a scam. Real notices come from the FTC’s consumersentinel.gov address, and real payments come through PayPal. When in doubt, go to ftc.gov yourself instead of clicking a link. You can report scams at ReportFraud.ftc.gov.

Why this matters beyond Cleo

Cash advance and “earned wage” apps are marketed as a cheaper, friendlier alternative to payday loans. But monthly subscriptions, express fees and optional “tips” can add up quickly on a $50 or $100 advance. The fees on a small, short advance can work out to a very high cost of borrowing. And because these apps usually repay themselves by debiting your bank account on payday, a missed or mistimed payment can trigger overdraft fees from your bank.

The Cleo case is the second FTC case we’ve written about this week involving charges consumers didn’t expect. Our post on the FTC’s lawsuit against Lens.com covers hidden “taxes and fees” and auto-renewal, and our junk fees guide explains the wider crackdown.

Federal law isn’t the only protection. Every state has its own consumer protection law against deceptive business practices, including Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, the New Jersey Consumer Fraud Act and the Texas Deceptive Trade Practices Act. Several states, including California, also have specific automatic-renewal laws. California’s requires a clear disclosure of the renewal terms, affirmative consent, and an easy way to cancel online. Some of these state laws let consumers sue directly, which the FTC Act does not.

What to do now

Check your email (including spam) for a message from no-reply@consumersentinel.gov through October 26.
Accept any PayPal payment within 30 days of receiving it.
Review your bank statements for recurring charges from any cash advance or budgeting app you no longer use, and cancel through the app and in writing. Keep screenshots.
If an app refuses to cancel or keeps charging you, dispute the charges with your bank and file complaints with the FTC (ReportFraud.ftc.gov), the CFPB and your state attorney general.
If an unpaid advance has gone to collections or a lawsuit, don’t ignore it. You may have defenses, and collectors must follow the Fair Debt Collection Practices Act.

Ginsburg Law Group helps consumers fight deceptive fees, unauthorized charges and unfair debt collection, and defends people sued over consumer debts. If a lender, app or collector has charged you money you didn’t agree to, contact us for a review.

This article is for general informational purposes only and is not legal advice. The FTC’s allegations against Cleo AI were resolved by settlement without a court finding of wrongdoing. Refund eligibility and amounts are determined by the FTC and its administrator. Consult a licensed attorney about your specific situation.