Online Bank Dave Updates Fee Structure After FTC Complaint Goes to Federal Court | Global News Avenue

Dave Company’s stock (dave) shares fell 9% on Tuesday as online banks reacted to the bank’s move Federal Trade Commission (FTC) Complaints against the company were filed with the Department of Justice (DOJ), which then filed suit in federal court in California.

In its initial complaint, the FTC said Dave “used misleading marketing to deceive consumers about the amount of their cash advances, charged consumers undisclosed fees, and charged consumers purportedly without their consent.” ‘Tips'”.

The DOJ’s amended indictment names co-founder and CEO Jason Wilk as a co-defendant. Dave and Wilke allegedly marketed the company’s app to “offer consumers ‘up to $500’ instantly, with no hidden fees,” but in fact, if they actually received the money, Few come close to that amount. To get an immediate cash advance, customers were required to pay a “quick fee,” which was “not clearly disclosed before consumers allowed the app to access their bank account,” officials added.

Dave removes “optional tipping and courier fees” from ExtraCash products

In response, Dave argued that the new filing is “an ongoing example of government overreach, which includes numerous allegations based on a variety of inaccuracies.” The company added that because “optional tipping appears to be the primary focus of the complaints, Focus,” so it is updating its simplified mandatory fee structure to “eliminate optional tips and quick fees on the company’s ExtraCash product.”

Despite today’s sell-off, Dave shares have soared more than 900% this year.