FTC Refers Case Against Online Cash Advance Firm Dave Inc. to Department of Justice

The Federal Trade Commission has referred its federal court case against online cash advance firm Dave Inc. to the U.S. Department of Justice (DOJ) 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.

“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 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 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.

The Commission vote to refer the civil penalty complaint to the DOJ for filing was 4-1, with Commissioner Melissa Holyoak voting no. The Department of Justice filed the amended complaint on behalf of the Commission in the U.S. District Court for the Central District of California.

NOTE: The Commission refers a complaint for civil penalties to the DOJ for filing when it has “reason to believe” that the named defendants are violating or are about to violate the law and that a proceeding is in the public interest. The case will be decided by the court.

The staff attorneys on this matter are Daniel Hanks, Jason Sanders, and Julia Heald of the FTC’s Bureau of Consumer Protection.