Cash advance company Cleo AI agrees to pay $17 million as a result of FTC lawsuit

Online cash advance company Cleo AI has agreed to pay $17 million to settle the Federal Trade Commission’s allegations that the company deceived consumers about how much money they could get and how fast that money could be available. The complaint, filed in federal district court along with the proposed settlement order, also alleges that Cleo made it difficult for consumers to cancel Cleo’s subscription service.

The proposed settlement order would prohibit Cleo from misleading consumers about any material terms of its advances, including the amount of money available to a consumer and any fees consumers will be charged. It would require Cleo to clearly and conspicuously disclose the terms of any subscription; to get consumers’ express, informed consent before charging them for a subscription; and provide a simple way for consumers to cancel.

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