FTC Sues Fintech Dave for Misleading Ads

The Federal Trade Commission (FTC) has filed a lawsuit against fintech company Dave, alleging that it misled consumers about cash advance availability and charged undisclosed fees. The FTC claims that while Dave advertised cash advances of up to $500, many users received little or no money, and fees of $3 to $25 for instant access were hidden until after sign-up. Additionally, the app allegedly collected unauthorized 'tips,' falsely stating they would fund meals for needy children, when in reality, the majority of these funds were retained by the company. The lawsuit accuses Dave of violating the FTC Act and the Restore Online Shoppers’ Confidence Act, highlighting the exploitation of financially vulnerable users. In response, Dave has stated that many of the FTC's claims are incorrect and it will defend itself. The lawsuit follows similar allegations against other fintech companies, signaling increased scrutiny on the sector.