FTC Sues Dave Over Misleading $500 Cash Advance Ads and Hidden Fees
The FTC has sued Dave Inc. for allegedly misleading users with $500 cash advance ads while concealing fees and deceptive tip practices.
Published on April 8, 2025
The U.S. Federal Trade Commission filed a lawsuit on November 5, 2024, against fintech company Dave Inc. The suit alleges that Dave misled consumers by advertising cash advances of up to $500, while the vast majority of users received only a fraction of that amount—or none at all. It further claims that Dave failed to clearly disclose key fees, including up to $25 for instant cash access and a $1 monthly membership fee.
Additional details in supplemental research point to the company’s practice of making it difficult for users to avoid paying so-called "tips" on cash advances, and misrepresentations regarding the use of these funds. A subsequent complaint by the U.S. Department of Justice in December 2024 expanded on these allegations, citing deceptive marketing practices and hidden fee structures. Dave Inc. has denied the claims and stated it intends to defend itself vigorously in court.