WASHINGTON, D.C. — The U.S. Department of Justice (DOJ) has filed an amended complaint against the cash advance company Dave Inc. and its CEO, Jason Wilk, following a referral from the Federal Trade Commission (FTC). The complaint accuses the company of misleading marketing, undisclosed fees, and unauthorized charges, while seeking civil penalties and consumer refunds.
The case, originally filed by the FTC in November 2024, alleges that Dave Inc. deceived financially vulnerable consumers by promoting its app as a means to access fee-free cash advances of up to $500. According to the complaint, the company often failed to provide the advertised amounts and imposed unexpected fees, including “express fees” and “tips.”
The amended complaint, filed in the U.S. District Court for the Central District of California, names Wilk as a co-defendant, highlighting his role in overseeing the company’s practices as both CEO and board chair.
Allegations Against Dave Inc.
The FTC and DOJ assert that Dave’s marketing misrepresents the cash advance process and its associated costs. While the app advertises advances of up to $500 without hidden fees, regulators allege that most users receive significantly less or are denied advances altogether. Furthermore, Dave allegedly charges an “express fee” for immediate access to funds, which the complaint claims is not clearly disclosed before the app gains access to users’ bank accounts.
The amended complaint also accuses Dave of profiting from “tips” described as optional. According to regulators, the company has charged consumers hundreds of millions of dollars in tips without adequately informing them of their ability to opt out. Dave further claims that these tips help provide meals to needy children, but the complaint alleges that the company donates just 10 cents for each percentage of a tip while keeping the rest. The donations do not fully cover the costs of a meal, according to the filing.
Regulatory Response
FTC Bureau of Consumer Protection Director Samuel Levine underscored the agencies’ commitment to addressing deceptive practices in financial technology:
“Dave has targeted consumers facing financial challenges with false promises of quick cash while pocketing surprise fees, including by paying itself a so-called ‘tip.’ Today the DOJ and FTC have shown their commitment to work together to protect consumers from these unlawful practices.”
The DOJ’s amended complaint accuses Dave Inc. and Wilk of violating the FTC Act and the Restore Online Shoppers’ Confidence Act. Regulators are seeking refunds for consumers, civil penalties, and an injunction to stop the company from continuing its allegedly deceptive practices.
The Case Moves Forward
The FTC voted 4-1 to refer the case to the DOJ, with Commissioner Melissa Holyoak dissenting. The DOJ subsequently filed the amended complaint, further escalating the legal action against Dave Inc. and Wilk. The case’s outcome could lead to significant penalties and refunds for affected consumers, as well as changes to the company’s operational practices.
The case is being closely watched as a potential precedent for regulating financial technology companies and their marketing practices, particularly those targeting consumers in vulnerable financial situations.
