FTC-PR-241105-1 (11-05-24)
FTC Takes Action Against Online Cash Advance App Dave for Deceiving Consumers, Charging Undisclosed Fees – Federal court complaint charges that company rarely provides advertised advance amounts, charges ‘tip’ fee to consumers without their knowledge
The Federal Trade Commission is taking action against online cash advance app Dave (PDF) for allegedly using misleading marketing to deceive consumers about the amount of its cash advances, charging consumers undisclosed fees, and charging so-called “tips” to consumers without their consent.
Dave describes the consumers it targets as being “financially vulnerable” or “financially coping,” including those whose spending exceeds their income, who have minimal savings, and who overdraft their bank accounts frequently.
“Dave lured in consumers living paycheck-to-paycheck with false claims of big-dollar advances, then reached into their pockets to give itself a so-called ‘tip,’” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Whether the products are called cash advances, payday loans, or something else, the FTC will take action to protect consumers from unauthorized charges and deceptive claims.”
FTC-PR-241105-1 (11-05-24)