The US Justice Department has launched a civil enforcement action against financial technology company Dave Inc and its CEO Jason Wilk, accusing them of violating federal law by misleading consumers through deceptive advertising practices. The department claims that the company’s cash advance offers were often misrepresented to lure users into its personal finance app.
According to the complaint filed on Monday, the Justice Department seeks unspecified amounts of consumer redress and monetary civil penalties from Dave Inc and its CEO. It also demands a permanent injunction to prevent any future violations.
The allegations include that Dave Inc charged hidden fees, misrepresents how it uses customers’ tips, and charges recurring monthly fees without allowing for easy cancellation. The company has denied many of these claims and plans to defend itself.
This marks an amendment to an earlier complaint filed by the Federal Trade Commission in November, which only named Dave Inc as a defendant and did not seek civil penalties.
Source: https://www.cnbc.com/2024/12/30/us-files-complaint-against-fintech-app-dave-and-its-ceo-.html