The Federal Trade Commission’s (FTC) case against Dave Inc., an Online Cash Advance firm, has been escalated to the U.S. Department of Justice (DOJ). The DOJ has now filed an amended complaint, bringing Dave CEO Jason Wilk into the legal action and seeking civil penalties for alleged deceptive practices related to its online cash advance services.
This development follows the FTC’s initial lawsuit against Dave in November 2024. The FTC accused Dave of employing misleading marketing tactics to misrepresent the actual amount of cash advances offered, imposing undisclosed fees on consumers, and improperly charging “tips” without explicit customer consent.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated, “Dave has preyed on consumers facing financial difficulties with false promises of quick cash, all while secretly adding surprise fees, including padding their pockets with so-called ‘tips.’” He added, “The DOJ and FTC are united in their commitment to protect consumers from these illegal practices.”
The amended complaint specifically names Jason Wilk, co-founder, and board chair of Dave, as a defendant. The core allegation remains that Dave and Wilk misled consumers by advertising instant cash advances “up to $500” with no hidden fees. Contrary to these claims, the complaint asserts that Dave rarely provides advances close to $500, often offers no advance at all, and levies an “express fee” for instant transfers. Crucially, these fees are allegedly not transparently disclosed before consumers grant the app access to their bank accounts.
Furthermore, the legal action highlights the substantial sums Dave allegedly collected through surprise “tip” charges, amounting to hundreds of millions of dollars. Many users were reportedly either unaware of these charges or believed them to be unavoidable. Adding to the questionable practices, Dave claimed these “tips” would fund meals for needy children, yet the complaint reveals that Dave donates a mere 10 cents per percentage point of the “tip,” retaining the majority of the amount. This donation is also insufficient to cover the actual cost of a meal.
The amended complaint charges both Dave and Wilk with violations of the FTC Act and the Restore Online Shoppers’ Confidence Act. The DOJ is seeking consumer refunds, civil penalties against the defendants, and a court order to halt Dave’s allegedly unlawful operations.
The FTC’s decision to refer the case to the DOJ for civil penalty action was passed by a 4-1 vote, with Commissioner Melissa Holyoak dissenting. The DOJ officially filed the amended complaint in the U.S. District Court for the Central District of California on behalf of the FTC.
NOTE: The FTC refers cases for civil penalties to the DOJ when it has “reason to believe” that violations of the law are occurring or are imminent and that legal proceedings are in the public interest. The final decision in this case will be determined by the court.
The FTC staff attorneys involved in this case are Daniel Hanks, Jason Sanders, and Julia Heald from the Bureau of Consumer Protection.
