United States of America: Filed amended complaint in FTC lawsuit against Dave Inc. for alleged misleading marketing pertaining to cash advances (Case No. 2:24-cv-9566)

On 30 December 2024, the Federal Trade Commission (FTC) filed an amended complaint with the United States District Court of California against Dave, a digital banking service with a primary focus on cash advances. The amended complaint alleges that Dave falsely advertises cash advances of up to USD 500, rarely providing the full amount, and charges undisclosed express fees for instant advances. It also claims that Dave has charged consumers hundreds of millions of dollars in surprise tips, which many users are unaware of or unable to avoid. It was also highlighted that only a small portion of the tips goes towards charitable donations, with the company retaining the majority. The complaint charges violations of the FTC Act and the Restore Online Shoppers’ Confidence Act, seeking refunds for consumers, civil penalties, and a court order to stop these practices.