The FTC said on October 8, 2026 that it is sending more than $15.8 million to 2,124,796 Cleo AI customers who paid for eligible instant cash advances. Eligible users get an email first, through October 26, and PayPal payments begin October 27, 2026. There is no claim form.
Where Do Cleo AI Refunds Stand?
Payments are starting. On October 8, 2026, the FTC announced that it is sending more than $15.8 million to 2,124,796 Cleo AI customers who paid for eligible instant cash advances. The money comes from the $17 million settlement the FTC reached with Cleo in 2025.Eligible users are being notified by email between October 8 and October 26, 2026. PayPal payments begin October 27, 2026. The FTC has not published an average or per-person amount.
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Who Is Getting Paid?
The FTC says the payments go to Cleo AI customers who paid for eligible instant cash advances. That ties to one of the agency’s allegations: that Cleo charged extra for advances promoted as same-day or instant. The FTC identified recipients from the company’s records, so there was no claim process. The agency has not said whether it will make any further distribution from the rest of the settlement money.How the PayPal Payments Work
According to the FTC, each eligible person first receives an email about the payment, and the PayPal payment follows starting October 27. The FTC says recipients should redeem their PayPal payment within 30 days. The refund administrator is Rust Consulting, Inc., and the FTC’s refund programs FAQ covers questions about PayPal payments.The FTC says it never requires payment or account information to receive a refund. A message asking for a fee, a bank password or card details is not part of the FTC program.
What Happened in Court
The FTC filed its complaint and a proposed settlement order in the U.S. District Court for the Southern District of New York on March 28, 2025. Judge Andrew L. Carter Jr. signed the stipulated order on April 25, 2025. It entered a $17 million judgment for the FTC and required Cleo to pay that amount, which Cleo said it was holding in escrow, within 7 days of entry.On April 30, 2025, the judge denied Cleo’s request to permanently seal parts of the complaint, and the unredacted complaint was refiled in early May.
On July 8, 2025, the FTC asked the court to order Cleo to show cause why it should not be held in contempt and sanctioned under the settlement order. Six days later, on July 14, the FTC withdrew the motion, and the judge denied it as moot on July 15. The filings available publicly do not say what prompted the motion or how it was resolved, and neither the FTC nor Cleo has commented on it. There has been no activity on the docket since.
What the FTC Alleged
According to the FTC’s complaint, Cleo’s ads promised users access to cash advances of hundreds of dollars, but few users received amounts close to what was advertised. The FTC also alleged that advances promoted as same-day or instant required an extra fee, and could still take until the next day even after that fee was paid. The complaint further alleged that Cleo made its monthly subscription hard to cancel, including by telling some users they could not cancel while an advance was still outstanding.Cleo settled the case. Beyond the payment, the order bars Cleo from misrepresenting the amount, timing or fees of its advances. It also requires the company to disclose subscription terms clearly, get users’ informed consent before charging them, and offer a simple way to cancel. The FTC said the $17 million would be used for refunds to consumers harmed by the practices it described.
Questions
When will Cleo AI refunds be paid?
The FTC says PayPal payments begin October 27, 2026. Eligible users are notified by email first, between the October 8 announcement and October 26.
Who gets a Cleo AI refund?
The FTC says it is paying 2,124,796 Cleo AI customers who paid for eligible instant cash advances. Eligibility is based on Cleo's records; the FTC has not published a per-person amount.
Is there a claim form for Cleo AI refunds?
No. The FTC identified eligible users from the company's records and is sending payments through PayPal after an email notice.
How long do recipients have to accept the PayPal payment?
The FTC says recipients should redeem their PayPal payment within 30 days.
How can a Cleo refund email be checked?
The FTC says it never requires payment or account information to receive a refund. The program appears on the FTC's official refunds page, and the FTC names Rust Consulting, Inc. as the refund administrator.
What did the FTC accuse Cleo AI of?
The FTC alleged that Cleo advertised cash advances of hundreds of dollars that few users actually received, charged extra for same-day or instant delivery that could still arrive the next day, and made it hard to cancel its paid subscription. Cleo settled the case for $17 million; the court did not decide the allegations.
Sources
• FTC — “FTC Returns More than $15.8 Million to Consumers Misled by Cash Advance App Company Cleo AI” (October 8, 2026)• FTC — Refund programs FAQ
• FTC — Cleo AI settlement announcement (March 27, 2025)
• FTC — Cleo AI, Inc., FTC v. case page
• FTC complaint (PDF)
• Stipulated order (PDF)
• Court docket — FTC v. Cleo AI, Inc., No. 1:25-cv-02594 (S.D.N.Y.)
• FTC — active refund programs
