FTC Alleges Neobank Dave Deceived Customers, Hid Fees

The US Federal Trade Commission alleged that the neobank Dave Inc. deceived consumers about their products and failed to disclose fees attached to customer offerings.

Similarly to other fintech firms, Dave targets so-called underbanked populations and describes itself as an app designed to serve consumers living paycheck to paycheck. “Like David slaying Goliath, we’re taking on big banks and their outdated ways,” the Los Angeles-based company’s website reads.

Dave’s marquee product is a cash advance feature offering up to $500, available in five minutes or less, according to its homepage. A user’s advance offering is determined by CashAI, a proprietary ...