The U.S. Justice Department and Federal Trade Commission have filed a civil enforcement action against financial technology company Dave Inc. and its CEO, Jason Wilk, alleging deceptive business practices.
The complaint accuses Dave of misleading users with advertisements for cash advances of up to $500 that many never received. Additionally, the company allegedly imposed hidden fees, misrepresented how it used customer tips, and charged recurring monthly fees without offering an easy way for users to cancel.
The Justice Department seeks unspecified monetary civil penalties, consumer redress, and a permanent injunction to prevent further violations. This latest filing amends and replaces an earlier FTC complaint from November, which had targeted only Dave and did not seek civil penalties.
Dave denies the allegations, asserting that many of the claims are inaccurate and pledging to defend itself.
The Justice Department highlighted the importance of holding companies accountable for deceptive practices that exploit consumers. The allegations bring into question the business practices of personal finance apps, which often market themselves as consumer-friendly solutions.
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