Cleo AI has agreed to pay $17 million to settle U.S. Federal Trade Commission (FTC) charges that it misled consumers about cash advance amounts and processing times, the agency announced Thursday.
FTC Allegations
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Cleo falsely advertised cash advances of $250 to $500, but most users received as little as $20.
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The company promised “instant” or “same-day” cash transfers but often delayed payments until the next day—while charging extra fees for expedited service.
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Cleo made subscription cancellations difficult, continuing to charge $5.99 or $14.99 monthly fees even after repeated cancellation requests.
Settlement Terms
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Cleo must improve transparency, obtain informed consent before charging for services, and make subscription cancellations easier.
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The $17 million settlement will be used to refund affected consumers.
Company Response
While denying any wrongdoing, Cleo’s general counsel, Colin Jones, said the FTC’s claims were inaccurate and reflected a misunderstanding of the company’s operations. He stated that settling was the best course of action to allow Cleo to focus on helping Americans improve their financial lives.
