unlawfulcharges.comHow Cleo's advances are priced
Cleo AI, Inc. offers cash advances to users of its paid subscription plans. The subscription is billed every month, whether or not you take an advance that month.
Standard delivery of an advance is slow. Under Cleo's current Terms and Conditions, dated August 11, 2026, getting the money the same day costs an Express Fee of $4.49 to $14.99 per advance, on top of the subscription.
Cleo's current terms also say it does not solicit or accept tips on cash advances. If you paid a tip on a Cleo advance in the past, that payment may still be part of your claim.
What the FTC alleged
The Federal Trade Commission sued Cleo, alleging that Cleo's ads promised access to hundreds of dollars in cash advances, but almost no one received anything close to the advertised amounts.
According to the FTC, Cleo advertised same-day or instant advances, but subscribers had to pay an additional fee for that speed. Even after paying it, some had to wait until the next day for their money. One consumer quoted in the complaint had paid for an "IMMEDIATE" $35 advance.
The FTC also said consumers were told they could not cancel their subscription until their outstanding advances were repaid, and that some were charged monthly fees after repeatedly asking to cancel.
The Express Fee is still part of how Cleo prices its advances today, under the terms described above.
Why the fees may be finance charges
Federal lending law requires lenders to disclose the cost of credit as a finance charge and an annual percentage rate. An advance repaid from your next paycheck, with a fee charged to get it, works like a short-term loan, whatever the app calls it.
Measured as a rate, the fees are steep. A $4.49 fee on a $100 advance repaid in two weeks equals an annual rate of more than 100%. A required monthly subscription makes the cost of each advance higher still. Many states cap small-loan interest far below these levels. Where the effective rate exceeds a state's cap, the charges may be unlawful.
State consumer-protection laws separately prohibit advertising that overstates what consumers will get, and cancellation obstacles that keep people paying.
Who may qualify, and what you could recover
You may have a claim if you used Cleo within the last four years and paid an Express Fee, a tip or a monthly subscription in connection with a cash advance. Repeat users are especially likely to qualify, because the charges add up with every pay cycle. Your Cleo app history and your bank statements record each advance and each charge.
A claim seeks to recover what the advances actually cost you, plus statutory damages where state law provides them. Maginnis Howard pursues these claims for consumers individually, and you pay no fee unless money is recovered for you. The short questionnaire on this page is the first step.
The legal basis
Why this may be illegal
Cleo AI offers cash advances to users of its paid subscription plans and charges an Express Fee of $4.49 to $14.99 to deliver the money the same day. On an advance repaid from the next paycheck, those charges function as the cost of credit, yet they are never disclosed as a finance charge or an annual percentage rate. The Federal Trade Commission has sued Cleo, alleging that its ads promised advances almost no one received in full, that same-day delivery cost an extra fee, and that subscribers were told they could not cancel until their advances were repaid.
The law
Federal lending-disclosure law, state interest-rate caps, and the unfair and deceptive practices laws of all 50 states. Cleo AI's "tips," "express" fees, and subscription charges on cash advances allegedly operate as undisclosed finance charges — a disguised interest rate.
What you could recover
Per-claimant actual damages = the sum of every "express," "instant," or "Lightning Speed" transfer fee, every pressured "tip," and every required monthly membership or subscription fee charged in connection with the advances, treated as the cost of credit. Where the effective annual rate (often 200%–400% or more) exceeds the claimant's state interest-rate cap, damages also include recovery of the unlawful charges and, in many states, statutory penalties (for example, forfeiture of all interest, or twice the interest paid). State consumer-protection statutes add statutory damages that vary by state (roughly $100 to $10,000 per violation, with enhanced or tripled damages in some states for willful conduct). Federal lending-disclosure law adds statutory damages of twice the undisclosed finance charge, with a floor of $200 and a ceiling of $2,000 for a one-time advance, or a floor of $500 and a ceiling of $5,000 where the product is an ongoing line of credit — but only for advances taken within one year before the claim is brought. Advances older than one year are recovered under the state-law claims, whose time limits are generally longer and vary by state. Attorney fees are recoverable under federal law and many state statutes. Typical individual claim range: $300–$7,500, depending on how many advances the claimant took, how recently, and the claimant's state.
How your claim would be handled
Claims like this are handled as individual arbitration cases — private proceedings, no courtroom. For Cleo AI, Inc., cases are typically administered through AAA.
The Advance, As Advertised* vs. What the Advance Actually Cost*
| The Advance, As Advertised* ($100 Cleo advance · repaid on your next payday, about 2 weeks) | $100.00 |
| Monthly subscription fee | +$5.99 |
| Express instant-transfer fee | +$4.49 |
| Pre-filled "tip" | +$5.00 |
| What the Advance Actually Cost* (Express-transfer fees, "tips," and required memberships are the cost of the credit — they just aren't called interest) | $115.48 |
Figures shown are illustrative examples, not records of an actual transaction; your amounts may differ.
Think you're affected? Check if you qualify and sign up in about two minutes — no upfront cost.
Check if you qualifyFrequently asked questions
Do I have to pay for this?
You don't pay anything unless we recover compensation on your behalf. Our legal team works on contingency, which means we only get paid if you do.
I thought the advance was free. Do I still have a claim?
Likely yes. The whole point of these claims is that the advances were marketed as 'free' or 'interest-free' while express fees, tips, and membership charges added up to a very high effective interest rate that was never disclosed as such.
What if I tipped voluntarily?
Regulators have found that these 'tips' are presented in ways designed to make consumers feel they are expected or required. If the tip functioned as the cost of borrowing, it counts toward your claim.
Do I need to still use the app?
No. Both current and former users who were charged these fees within the last four years may qualify.
What is Maginnis Howard?
Maginnis Howard is a consumer protection and personal injury law firm serving clients nationwide. You may find more details about us at www.carolinalaw.com.
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