Dave CEO Jason Wilk at the TechCrunch Disrupt conference in San Francisco, California, United States, Monday, October 28, 2024.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
The U.S. Department of Justice filed a complaint on Monday and announced civil enforcement actions against fintech companies Dave Company and its chief executive officer Jason Wilk Alleged violation of federal law.
The Justice Department and Federal Trade Commission accused the company of luring users into using its Personal Finance Apps Cash advances of up to $500 are advertised, but many people never receive them.
The lawsuit, filed by the Justice Department, seeks unspecified consumer restitution and civil penalties against the defendants, as well as a permanent injunction barring them from engaging in future violations, the Justice Department said.
The government alleges that Dave misled consumers by deceptively advertising its cash advances, charging hidden fees, misrepresenting how Dave used customer tips, and charging recurring monthly fees without providing an easy cancellation mechanism.
Dave says many of these claims are incorrect and will defend itself.
The complaint filed Monday amends and supersedes the FTC’s complaint filed in November, which named Dave only as a defendant and did not seek any civil penalties.
