FTC has filed a complaint against Dave for seldom providing the advertised loan amounts and charging consumers a "tip" without an opt-out option. Fintech company Dave is accused of deceiving consumers by enticing them with the promise of up to USD 500 in cash advance loans that they ultimately did not receive.

“Express Fee” required to pay to avoid waiting 2 to 3 days According to the lawsuit, which was submitted in a US District Court for the Central District of California, Dave promised “instant” or “on-the-spot” access to advances. However, consumers were required to pay an “Express Fee” ranging from USD 3 to USD 25 to avoid waiting two to three business days. Additionally, Dave reportedly took an extra 15% of the advances that consumers received, labelling it as a “tip.” The FTC noted that many consumers remained unaware of this fee or the ways to avoid it.

They emphasised that Dave's actions contravene both the FTC Act and the Restore Online Shoppers’ Confidence Act. Moreover, the lawsuit alleges that Dave misled consumers about meal donations tied to tips on its app, displaying a cartoon of a child to suggest donations for healthy meals. However, instead of providing meals, Dave donated only 10 cents per tip percentage while retaining most of the fees.

From 2022 to June 2024, Dave reported over USD 149 million in tip revenue. Additionally, the FTC claims Dave charged all users a USD 1 monthly membership fee without consent, which was difficult to cancel. On the same day that the FTC revealed its actions, Dave reported third-quarter revenues of USD 92.5 million, marking a 41% increase compared to the previous year.

The company's net income for these three months included a USD 7 million legal settlement and a litigation reserve connected to the FTC lawsuit, as stated by the company. Source: Link .