The Justice Department is asking a federal court to issue a permanent injunction against cash advance firm Dave Inc. and its CEO Jason Wilk, alleging that the company uses misleading marketing tactics to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called “tips” to consumers without their consent.
The FTC first filed a complaint against Dave Inc. in November and now has referred the case to the Justice Department, which has filed an amended complaint in the U.S. District Court for the Central District of California. The amended complaint substitutes the United States as plaintiff in place of the Federal Trade Commission and adds Wilk as a defendant under all of the counts of the original complaint.
The department has asked for a permanent injunction against the company and the imposition of civil penalties and refunds for consumers.
The amended complaint alleges that Dave Inc. and Wilk, the company’s co-founder and board chairman, violated the FTC Act and the Restore Online Shoppers’ Confidence Act. Many of the allegations mirror those contained in the original FTC complaint.
For instance, the Justice Department likewise contends that Dave marketed its app as instantly giving consumers up to $500 without any fees. The amended complaint similarly alleges that Dave very rarely offers consumers anywhere near that amount. The company often does not offer consumers any cash advance, according to the amended complaint.
The amended complaint also alleged that Dave and Wilk have charged consumers surprise fees that are described as “tips,” repeating the claim that consumers are unaware that there is any way to avoid paying those tips.
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