Financial technology company Dave and its CEO Jason Wilk landed in trouble after legal action from Department of Justice over alleged violation of federal law.
On Monday, the Justice Department and Federal Trade Commission (FTC) have filed the complaint against Dave for luring its customers by advertising cash advances of almost $500 that many users might never receive.
Dave is under fire for allegedly misleading customers and not informing them how their tips are being utilised, taking hidden charges, and monthly subscription fee without giving a simple way to cancel them.
In the complaint, DOJ asked the company for the unspecified amounts of users to be compensated and a permanent order to prohibit them from engaging in any future violations.
However, the company rep said that the claims are false and they will be defending against all.
Meanwhile, Dave also revealed how they are also coming out with a more effective fee structure.
Moreover, the tech giant shared that all new customers on boarding after December 4 have been moved to new revised structure and there will be gradual shift of the previous customers too.
The legal suit by Department of Justice was a revised version of a complaint by Federal Trade Commission in November.
