The Department of Justice on Monday filed a complaint and announced a civil enforcement action on Monday against financial technology company Dave Inc and its CEO Jason Wilk for alleged violations of federal law.
The DOJ 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 received.
The complaint 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 DOJ said.
The government alleged that Dave Inc. 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 Inc. said many of such claims are incorrect and it will defend itself.
The complaint amends and replaces an earlier complaint that the FTC filed in November, which had named only Dave Inc. as a defendant and did not seek any civil penalties.
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