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The Justice Department and the Federal Trade Commission alleged 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 Justice Department, seeks unspecified amounts of consumer redress and monetary civil penalties from the defendants and a permanent injunction to prohibit them from engaging in future violations, the Justice Department said.
The government alleges that Dave misled consumers by deceptively advertising its cash advances, charging hidden fees, misrepresenting how Dave uses customers’ tips and charging recurring monthly fees without providing a simple mechanism to cancel them.
Dave says many of such claims are incorrect and it will defend itself.
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The complaint filed on Monday amends and replaces an earlier complaint that the FTC filed in November, which had named only Dave as a defendant and did not seek any civil penalties.
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