WASHINGTON, D.C. — The Federal Trade Commission (FTC) has escalated its legal action against online cash advance firm Dave Inc., referring the case to the U.S. Department of Justice (DOJ). The DOJ has filed an amended complaint that now includes CEO Jason Wilk as a defendant, alleging deceptive marketing practices and seeking civil penalties.
The FTC originally brought its case against Dave in November 2024, accusing the company of misleading consumers by falsely advertising the size of cash advances, charging undisclosed fees, and taking unauthorized payments labeled as “tips.” The amended complaint expands these allegations to implicate Wilk, also the company’s co-founder and board chair.
Central to the case are claims that Dave advertises cash advances “up to $500” but rarely provides this amount and frequently charges undisclosed “express fees” for instant advances. Additionally, the FTC and DOJ allege Dave has wrongly collected hundreds of millions of dollars in “tips,” which consumers may not realize are optional or avoidable. The company also claims to donate a portion of these tips to provide meals for needy children, yet allegedly contributes only a fraction of the tip’s value toward these donations.
This action charges both Wilk and the company with violating the FTC Act and the Restore Online Shoppers’ Confidence Act. The government seeks consumer refunds, civil penalties, and an end to the alleged deceptive practices.
FTC Bureau of Consumer Protection Director Samuel Levine emphasized the collaboration between the FTC and DOJ, stating that their joint efforts aim to shield financially vulnerable consumers from exploitative business practices.
The amended complaint was filed in the U.S. District Court for the Central District of California. A Commission vote to refer the complaint to the DOJ resulted in 4-1 approval, with Commissioner Melissa Holyoak dissenting.
The court will now determine the outcome of these allegations, which could result in significant financial and legal repercussions for Dave Inc. and its leadership.
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