The lender falsely promised instant cash advances while charging higher than disclosed fees.
The Federal Trade Commission (FTC) announced that an online cash advance company, Cleo AI, has agreed to a $17 million settlement following allegations that it misled consumers about the size and speed of available cash advances. The FTC’s complaint, filed in the Southern District of New York, alleged that Cleo falsely advertised access to hundreds of dollars in instant cash advances.
Most consumers received much smaller amounts and were charged additional fees for same-day access. Some users also reported delays even after paying extra fees. The company allegedly also made it difficult for consumers to cancel subscriptions, continuing to charge many of them despite repeated requests.
“The Complaint lays out how Cleo misled consumers with promises of fast money, but consumers found they received much less than the advertised hundreds of dollars promised, had to pay more for same day delivery, and then had difficulty canceling,” said Director Christopher Mufarrige of the FTC’s Bureau of Consumer Protection.
As the Lord Leads, Pray with Us…
- For Commissioner Andrew Ferguson as he heads the Federal Trade Commission.
- For Director Mufarrige as he oversees the agency’s Bureau of Consumer Protection.
Sources: Federal Trade Commission
