The U.S. government is taking aim at fintech app company Dave Inc. and its CEO Jason Wilk. On behalf of the Federal Trade Commission (FTC), the Department of Justice (DOJ) filed a complaint alleging the company and Wilk violated federal law.Purportedly, Dave attracted consumers to its personal finance app with the promise of a $500 cash advance, but the bonus money purportedly never showed up. The government believes that not only did Dave fail in its advertised promise, but it also charged hidden fees and a monthly subscription payment that was not easy to cancel.The DOJ’s complaint seeks undisclosed monetary damages as well as consumer compensation. Dave must also stop engaging in further violations.The recent DOJ filing is actually an amendment adding Wilk as a defendant to a previous case. In November, the FTC filed a complaint solely against Dave Inc. and did not ask for monetary damages.Dave Inc. says it will actively take on the fight as the alleged FTC claims are flawed. The fintech firm states it has not broken any law and that other government agencies have reviewed and approved its business model.“We believe the amended complaint is a continued example of government overreach and includes numerous allegations that are based on various inaccuracies,” the company wrote in response to the DOJ lawsuit. “We take compliance and consumer transparency very seriously, and we intend to vigorously defend ourselves in this matter.”Dave recently updated its “mandatory fee structure.” Express and optional tips fees for its ExtraCash account, which gives users a cash advance on paychecks, have been eliminated. Any users that signed up after Dec. 4 are already on the revised fee structure, with previous members currently being transitioned.The recent action against Dave Inc. is another in a line of government investigations and interventions related to fintech apps. Earlier this month, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and payments platform Branch Messenger. According to the complaint, Branch Messenger allegedly charged users “junk” transfer fees. In addition, Walmart reportedly opened accounts for delivery drivers without consent and then forced them to use the app to get paid.
Gio. Gen 9th, 2025
