DOJ’s allegations state that Dave and Wilk falsely advertise instant cash advances. Tada Images/Shutterstock.

The US Justice Department (DOJ) has initiated civil enforcement action against fintech company Dave and its CEO Jason Wilk, alleging deceptive marketing practices.

This complaint from DOJ and the Federal Trade Commission (FTC) accuses the company and its co-founder of misleading consumers about cash advance amounts and charging undisclosed fees.

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The FTC initially brought the case against Dave in November 2024, claiming that the company deceives customers with its marketing and charges them so-called “tips” without consent.

The amended complaint now includes Wilk, who also serves as the company’s board chair, as a co-defendant.

DOJ’s allegations state that Dave and Wilk falsely advertise instant cash advances of “up to $500” without hidden fees.

However, the complaint suggests that consumers rarely receive the full amount, sometimes receive no advance at all, and are charged an “express fee” for instant access, which is not clearly disclosed.

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Furthermore, it details that Dave and Wilk have levied hundreds of millions of dollars in surprise fees on consumers, described as “tips”. Many users are reportedly unaware of these charges or how to avoid them.

The charges against Dave and Wilk include violations of the FTC Act and the Restore Online Shoppers’ Confidence Act.

The Justice Department is seeking refunds for consumers, civil penalties against the defendants, and a court order to halt the company’s alleged unlawful practices.

FTC Bureau of Consumer Protection director Samuel Levine said: “Dave has targeted consumers facing financial challenges with false promises of quick cash while pocketing surprise fees, including by paying itself a so-called ‘tip’.

“Today the DOJ and FTC have shown their commitment to work together to protect consumers from these unlawful practices.”