Hundreds of Dave Customers File Arbitration Claims, Alleging Misleading Promises and Hidden Fees

Rhea-AI Summary

Over 600 consumers have filed arbitration claims against Dave (NASDAQ: DAVE), alleging misleading practices and hidden fees related to its ExtraCash earned wage access product. The claims, filed through consumer protection law firm Janove PLLC, assert that Dave misled users about its "no hidden fees" and "instant cash advances" promises. The company faces allegations of charging unexpected subscription costs, coercing "tip" payments, and withholding funds unless users paid additional fees. The legal challenge follows recent actions by the FTC and DOJ, who filed lawsuits in late 2024 accusing Dave of deceptive marketing, misrepresenting charitable contributions, and implementing unfair recurring fees. The controversy highlights growing scrutiny of fintech companies' business practices and their impact on financially vulnerable consumers.

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• None.

Negative

• Over 600 consumers have filed arbitration claims against Dave for misleading practices and hidden fees
• FTC lawsuit alleges misrepresentation of ExtraCash product's availability, speed, and cost
• DOJ filed amended complaint accusing Dave of targeting vulnerable users with deceptive marketing
• Company allegedly misrepresented charitable 'tip' payments and failed to disclose monthly fees
• Users report being charged fees even after attempting to cancel subscriptions

News Market Reaction

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-5.73% News Effect

On the day this news was published, DAVE declined 5.73%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, June 17, 2025 /PRNewswire/ -- Over 600 consumers have filed arbitration claims against Dave Operating LLC, a subsidiary of Dave, Inc. (NASDAQ: DAVE), the operator of the Dave financial services mobile application and platform. The consumers allege that Dave misled them as to its service offerings and charged hidden fees related to its ExtraCash earned wage access product. The filings stand as part of a major challenge to the company's business practices and to the broader "neobank" model that has exploded in popularity in recent years.

The consumers, represented by consumer protection law firm Janove PLLC, allege that Dave lured users with promises of "no hidden fees" and "instant cash advances," but delivered neither. Instead, users report being charged unexpected subscriptions costs, coerced into paying "tips," and denied access to funds unless they paid additional fees.

Dave, a publicly traded neobank that went public in 2022, has faced growing scrutiny over these practices. In November 2024, the Federal Trade Commission ("FTC") filed a lawsuit alleging that Dave misrepresented the availability, speed, and cost of its ExtraCash product. A month later, the U.S. Department of Justice ("DOJ"), acting on behalf of the FTC, filed an amended complaint accusing Dave of targeting financially vulnerable users with deceptive marketing and unfair recurring fees.

According to the FTC and DOJ, Dave:

• Marketed ExtraCash advances with false promises of speed and availability.
• Misrepresented "tip" payments as charitable contributions, when only pennies per dollar were donated.
• Failed to disclose a $1 monthly subscription fee in a clear and timely manner.
• Made it difficult for users to cancel their accounts and stop charges.

Despite advertising up to $500 in instant advances, Dave routinely offered users far less, and withheld even those smaller amounts unless they paid a hidden "Express Fee." Others say they were charged monthly fees even when they stopped using the app or attempted to cancel their subscription, and that the "tips" they believed supported charity were mostly kept by Dave.

"Dave promised quick and accessible cash advances without hidden costs, but the reality for many users was quite different," said Raphael Janove, Founder of Janove PLLC. "We are taking action to hold the company accountable for exploiting financially vulnerable consumers."

The mass arbitration filings highlight a broader reckoning in the fintech space, where flashy user interfaces and bold claims can obscure the same kinds of predatory practices that traditional banks have long been criticized for.

To learn more about the arbitration claims against Dave Operating LLC, and how interested consumers can assess whether they might have a legal claim, follow this link.

About Janove PLLC:

Raphael Janove founded Janove PLLC to continue his dedication to serving the public and advocating for the rights of consumers, workers, and small businesses. Janove represent large numbers of individuals through class actions and mass arbitrations. Janove's representations span consumer protection and false advertising, data privacy and data tracking, Lanham Act and unfair competition, worker wages, human trafficking, and forced labor.

Contact:

Janove PLLC
Raphael Janove
Email: raphael@janove.law
Phone: (646) 347-3940

Licensed in New York, California, Illinois, Pennsylvania, and Utah.

View original content:https://www.prnewswire.com/news-releases/hundreds-of-dave-customers-file-arbitration-claims-alleging-misleading-promises-and-hidden-fees-302483236.html

SOURCE Janove PLLC

FAQ

What are the legal claims filed against Dave (DAVE) in June 2025?

Over 600 consumers filed arbitration claims against Dave, alleging misleading practices and hidden fees related to its ExtraCash product, including unexpected subscription costs, coerced tips, and undisclosed fees.

What specific allegations did the FTC and DOJ make against Dave (DAVE)?

The FTC and DOJ alleged that Dave misrepresented ExtraCash advances' availability and speed, misrepresented tip payments as charitable contributions, failed to disclose monthly fees, and made account cancellation difficult.

How did Dave (DAVE) allegedly mislead customers about its tip system?

Dave allegedly misrepresented tip payments as charitable contributions when only pennies per dollar were actually donated, while the company kept most of the tips.

What hidden fees are customers claiming Dave (DAVE) charged?

Customers claim Dave charged unexpected subscription costs, a hidden $1 monthly fee, Express Fees for cash advances, and continued charging monthly fees even after users attempted to cancel.

When did the FTC and DOJ file their lawsuits against Dave (DAVE)?

The FTC filed its lawsuit in November 2024, followed by the DOJ filing an amended complaint in December 2024.