US Government Files Complaint Against Fintech App Dave and CEO for Alleged Violations

The U.S. Justice Department has filed a civil enforcement action against financial technology company Dave (DAVE.O) and its CEO Jason Wilk, alleging violations of federal law. The complaint, filed on Monday, is accompanied by claims from the Federal Trade Commission (FTC) regarding deceptive advertising and improper business practices linked to Dave’s personal finance app.

The government accuses Dave of misleading consumers by advertising cash advances of up to $500 that many users never receive. Additionally, the complaint alleges the company misrepresented how customer tips were used, charged hidden fees, and imposed recurring monthly charges without providing an easy way for users to cancel.

The Justice Department seeks consumer redress, civil penalties, and a permanent injunction to prevent future violations. Dave, in response, disputes many of the claims, stating that they are incorrect, and has introduced a new fee structure to eliminate tips and “express fees” previously associated with instant cash advances. These changes began with new customers on or after December 4 and are also being applied to existing customers.

The current complaint amends a previous FTC complaint from November, which had only named Dave as the defendant and did not seek civil penalties.