Cash Advance Company to Pay $17 Million in FTC Settlement

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  • The FTC has reached a proposed settlement with Cleo AI, Inc., resolving allegations that the personal finance app violated the FTC Act and the Restore Online Shoppers’ Confidence Act through deceptive marketing and billing practices related to its cash advance services.
  • According to the FTC’s complaint, Cleo allegedly misled users by advertising instant or same-day cash advances of hundreds of dollars, when in reality most consumers qualified for lower amounts, faced undisclosed fees for expedited service, and often experienced delays. The company also allegedly made it difficult for users to cancel subscriptions and stop recurring charges.
  • Under the terms of the proposed settlement, Cleo must pay $17 million to the FTC, clearly disclose subscription terms, and provide a straightforward cancellation process for users.
  • This action follows a broader FTC enforcement trend targeting deceptive practices allegedly made by cash advance providers, including prior actions involving  Dave, Inc., Bridge It, Inc. d/b/a Brigit, and RCG Advances, LLC.
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