FTC Sues Dave Inc

By Jody Godoy
(Reuters) – The U.S. Federal Trade Commission (FTC) sued financial technology company Dave Inc in Los Angeles on Tuesday. The lawsuit accuses Dave of misleading users regarding its personal finance app, which advertises cash advances of up to $500 that many users never receive.

The FTC claims that very few users are offered the full amount advertised, and many do not receive an advance at all. The app targets users facing financial hardship but allegedly does not inform them upfront about fees. Cash advances come with a fee of up to $25 for instant access and a $1 monthly charge.

Additionally, Dave collects hard-to-avoid "tips" on transactions and allegedly misrepresents that these funds are used to purchase meals for children in need, as stated in the lawsuit.

In response, Dave insists that many of the claims are incorrect and states that it will defend itself.