Check your email: $15.8 million being sent to users of cash advance app, FTC says

(NEXSTAR) – If you’ve used the AI-based cash advance app Cleo, you may be receiving a payment from the Federal Trade Commission soon.

The FTC announced last week that it would be sending out more than $15.8 million to users impacted by “Cleo AI’s deceptive claims about the amounts and timing of available cash advances and the company’s hard-to-cancel subscriptions.”

In a complaint filed last year, the FTC alleged Cleo misled customers about how quickly they could access cash advances and how much they would receive. The agency said Cleo suggested to customers that they could have “access to ‘hundreds of dollars’ in cash advances when almost no one received even close to the advertised amounts.”

Cleo was also accused of charging hidden fees for same-day or instant cash advances, only for the advance to take until the next day “often,” and for making it difficult for users to cancel.

In March, Cleo agreed to pay $17 million to settle the allegations.

More than 2.1 million Cleo AI customers are expected to receive payments from the FTC. Eligible users, “who paid for eligible instant cash advances,” are expected to receive an email from no-reply@consumersentinel.gov by Oct. 26, if they haven’t already.

PayPal payments are expected to follow starting on Oct. 27, the FTC said. If you receive such a payment, the FTC says you should redeem it within 30 days.

The FTC didn’t say exactly how much consumers would receive, but if the 2,124,796 payments the agency is sending out were an equal portion of the more than $15.8 million pot, each person could expect just under $7.50.

While agreeing to the settlement, Cleo did not admit any wrongdoing.