US files complaint against fintech app Dave and its CEO (updated)

Dave

30/12/2024 21:46

(Adds details about complaint, company reaction to allegations
in paragraphs 4-6)
    By Kanishka Singh
       WASHINGTON, Dec 30 (Reuters) - The U.S. Justice
Department filed a complaint and announced a civil enforcement
action on Monday against financial technology company Dave Inc
 DAVE.O  and its CEO Jason Wilk for alleged violations of
federal law.
    The Justice Department and the Federal Trade Commission
alleged the company lured users to its personal finance app by
advertising cash advances of up to $500 that many never receive.
    The complaint, filed by the Justice Department, seeks
unspecified amounts of consumer redress and monetary civil
penalties from the defendants and a permanent injunction to
prohibit them from engaging in future violations, the Justice
Department said.
    The government alleges that Dave misled consumers by
deceptively advertising its cash advances, charging hidden fees,
misrepresenting how Dave uses customers' tips and charging
recurring monthly fees without providing a simple mechanism to
cancel them.
    Dave says many of such claims are incorrect and it will
defend itself.
    The complaint filed on Monday amends and replaces an earlier
complaint that the FTC filed in November, which had named only
Dave as a defendant and did not seek any civil penalties.
    
    

 (Reporting by Kanishka Singh in Washington; Editing by Chris
Reese and Aurora Ellis)
 ((Kanishka.Singh@thomsonreuters.com; +12024508248;))