WASHINGTON—The Federal Trade Commission has referred its federal court case against online cash advance firm Dave Inc. to the U.S. Department of Justice which has filed an amended complaint in the case that names Dave CEO Jason Wilk as a defendant and seeks civil penalties.
The FTC first brought its case against Dave in November 2024, charging that the company uses misleading marketing to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called “tips” to consumers without their consent, the FTC explained.
“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,’” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Today the DOJ and FTC have shown their commitment to work together to protect consumers from these unlawful practices.”
The amended complaint names Wilk, who co-founded Dave and also serves as the company’s board chair, as a co-defendant in the allegations, that include that he and the company market their app as instantly providing consumers “up to $500” without any hidden fees. The complaint alleges that the defendants actually very rarely offer consumers anywhere near the advertised $500, often do not offer any cash advance at all, and charge consumers an “express fee” to get cash advances instantly that they do not clearly disclose before consumers give the app access to their bank accounts, the FTC said.
The complaint also alleges that Dave and Wilk have charged consumers hundreds of millions of dollars in surprise fees that are described by Dave as “tips.”
“Many consumers are either unaware that Dave is charging them or unaware that there is any way to avoid paying the so-called ‘tips.’ The company also says that, based on the consumer’s payment of a ‘tip,’ it will provide healthy meals to needy children, when in reality, Dave donates just 10 cents for each percentage in ‘tip’ and keeps the rest of the ‘tip’ amount. Dave’s donation does not pay for the food required to actually provide a meal,” the FTC said.
The amended complaint charges Dave and Wilk with violating the FTC Act and the Restore Online Shoppers’ Confidence Act and seeks both refunds for consumers and civil penalties against the defendants, as well as asking the court to stop the company’s unlawful actions.