The Federal Trade Commission (FTC) has referred its ongoing legal battle against the online cash advance company Dave Inc. to the U.S. Department of Justice (DOJ), which has now filed an amended complaint adding Dave CEO Jason Wilk as a defendant. The case accuses Dave of misleading consumers through deceptive marketing, hidden fees, and unauthorized charges, and seeks civil penalties for the company and its leadership.
The FTC’s original complaint, filed in November 2024, detailed how Dave, a popular mobile personal finance app, misleads consumers—many of whom are financially vulnerable—by advertising “instant” cash advances of up to $500, but delivering far less than promised, if anything at all. The new DOJ filing expands on these charges, naming Wilk as a co-defendant and seeking financial penalties.
False Promises and Hidden Fees
At the core of the lawsuit is Dave’s deceptive advertising, which prominently claims that users can receive “up to $500 instantly” after downloading the app. However, according to the complaint, this is far from the reality. In the 14 months following Dave’s launch of its $500 cash advance promotion, fewer than 1 in 45,000 new users were offered the full $500. In fact, the company most commonly offered small advances of $25 or nothing at all.
Many users, according to the lawsuit, were also charged a hidden “Express Fee” of $3 to $25 to receive their cash advances “instantly.” This fee is disclosed only after consumers have provided Dave with access to their bank accounts, and if they don’t pay the express fee, they face a two- to three-day waiting period to receive their money.
More troublingly, the complaint alleges that Dave automatically charges consumers a 15% “tip” on any cash advance without their clear consent. While the app encourages users to contribute tips by suggesting that each tip helps provide meals for hungry children, the lawsuit claims that Dave only donates a token amount—around $1.50—while pocketing the majority of the tip fees.
“Dave lured consumers living paycheck-to-paycheck with false claims of big-dollar advances, then reached into their pockets to give itself a so-called ‘tip,’” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Whether the products are called cash advances, payday loans, or something else, the FTC will take action to protect consumers from unauthorized charges and deceptive claims.”
Monthly Subscription Fees and Unclear Cancellation Processes
In addition to the “tip” charges, Dave is also accused of charging consumers a $1 monthly membership fee, often without their knowledge or consent. Many users, the complaint claims, found it difficult to cancel their subscriptions, with complicated cancellation processes and obstacles preventing them from stopping the recurring charges.
One consumer quoted in the complaint described the process of trying to cancel the subscription as “a fight,” claiming they were charged the monthly fee even after they had tried to delete their account.
The lawsuit highlights that Dave primarily targets consumers who are financially struggling—those with low or no savings, frequent overdraft charges, and a tendency to live paycheck to paycheck. According to the complaint, the app’s marketing is designed to exploit these individuals’ financial challenges, promising quick cash while hiding fees and providing very little in return.
The case also emphasizes that Dave’s misleading marketing is compounded by its failure to properly disclose essential information, such as the actual likelihood of receiving a $500 advance, the true cost of the express fee, and the deceptive nature of its tip system.
CEO Jason Wilk Named as Defendant
The amended DOJ complaint also names Dave CEO Jason Wilk as a defendant, holding him personally responsible for the company’s deceptive practices. Wilk, who co-founded Dave and serves as the company’s board chair, is accused of directing and overseeing the marketing and business practices that led to widespread consumer harm.
The DOJ’s involvement in the case follows the FTC’s referral after the commission filed its initial complaint. The government now seeks both financial restitution for consumers who were affected by Dave’s practices and civil penalties for the company and its executives. The DOJ is also requesting a court order to stop Dave from continuing its allegedly unlawful practices.
As of now, Dave has yet to issue a formal response to the latest legal developments. However, the company’s previous public statements have denied the allegations, arguing that its services are designed to help financially vulnerable consumers access quick cash in times of need.
Despite its defense, the ongoing case against Dave raises important questions about transparency, consumer rights, and the ethical responsibilities of fintech companies that market to financially vulnerable individuals.
The case against Dave serves as a significant reminder of the growing scrutiny on fintech companies and their business practices, particularly those that target consumers in precarious financial situations. If successful, the legal action could result in substantial penalties for Dave and set a precedent for other companies in the financial services space.
As the case progresses, both regulators and consumers alike will be closely watching the outcome, particularly given the scale of Dave’s reach—its app has millions of users and has raised hundreds of millions of dollars in revenue.
“The Justice Department is committed to stopping companies and their executives from preying on financially vulnerable consumers with deceptive advertisements, hidden fees and subscriptions that are difficult to cancel,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to enforce the FTC Act, ROSCA and other statutes that protect consumers from such misconduct.”
