Author: Kanishka Singh
WASHINGTON (Reuters) – The U.S. Justice Department filed a complaint and announced civil proceedings on Monday against financial technology firm Dave Inc and its CEO Jason Wilk for alleged violations of federal law.
The Justice Department and the Federal Trade Commission alleged that the company lured users to its personal finance app by advertising cash advances of up to $500 that many never receive.
The complaint, filed by the Department of Justice, seeks unspecified amounts of consumer damages and civil penalties from the defendants, as well as a permanent injunction from participating in future violations, the Department of Justice said.
The government alleges that Dave deceived consumers by falsely advertising its cash advances, charging hidden fees, misrepresenting how Dave used customers’ tips, and charging recurring monthly fees without providing an easy mechanism to cancel them.
Dave says many such claims are false and will defend himself.
The complaint filed Monday amends and supersedes an earlier complaint filed by the FTC in November, which named only Dave as a defendant and did not seek any civil penalties.
