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

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: [email protected]
Phone: (646) 347-3940

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

SOURCE Janove PLLC