FTC sues fintech app Dave over misleading $500 cash advance ads (updated)

Dave

05/11/2024 22:36

(Adds detail from the complaint in paragraphs 3-5)
    By Jody Godoy
       Nov 5 (Reuters) - The U.S. Federal Trade Commission sued
financial technology company Dave Inc  DAVE.O  in Los Angeles on
Tuesday, accusing it of luring users to its personal finance app
by advertising cash advances of up to $500 that many never
receive.
    Very few users are offered the full amount advertised, and
many are not given an advance at all, the FTC said in the
lawsuit filed in federal court.
    The app appeals to users facing financial hardship but does
not make users aware upfront that it charges a fee of up to $25
to receive the cash instantly and a monthly $1 fee, the FTC
alleged. Dave also collects hard-to-avoid "tips" on transactions
and misrepresents that the money is used to purchase meals for
children in need, the FTC said.
    Dave said many of the claims are incorrect and it will
defend itself.

 (Reporting by Jody Godoy in New York; Editing by Lisa Shumaker
Editing by Chris Reese)
 ((Jody.Godoy@thomsonreuters.com;))