Money Lender “Dave” is In Hot Water with the FTC and DOJ. Scam or False Advertising?

When is a scam not a scam? Is it a scam or false advertising when a company stretches the truth? Should an advertiser, like money lender Dave, that offers easy, quick cash advances to consumers (“Get $500 instantly”) be held to a higher standard than a company selling health products or beer?
Either way, as consumers, we need to know that not all advertising is 100% truthful all the time and that, in many cases, the sales message doesn’t match reality. This can be frustrating if the message involves getting much-needed money fast or easily..
Money lender Dave is in trouble.
The U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) have filed formal and legal complaints against Dave, a heavily advertised money lender who allegedly deceived customers and charged undisclosed fees.
While it seems no consumer has lost money with Dave or paid exorbitant fees, Dave has cashed in big time on consumers’ hope and misplaced trust and not helped many of them get easy cash as advertised.
Dave took consumers’ money in tips, express fees, and a sneaky monthly charge, but it rarely came through as advertised.
What did Dave do that was wrong?
What did Dave say or do that got them in trouble with the government? Let’s examine the situation, and you can decide if it makes sense.
The FTC reported a formal complaint against Dave, claiming that the lender used deceptive advertising to attract, engage, and deceive consumers about easy-to-get “cash advances” through the Dave app. Here’s where Dave went wrong.
- They advertised quick, easy-to-get cash instantly, up to $500, but failed to mention that very few who reached out got that amount.
- They targeted, purposefully or incidentally, consumers who might face hardship and desperately need cash without credit checks.
- Dave charged consumers an “express fee” so those who requested a cash advance could receive it instantly. However, that fee was not disclosed to consumers.
- The lender asked for or suggested that consumers give Dave a “tip” for a vague reason, which may have fooled applicants into believing that a tip would increase their chance of a higher cash advance and/or would look more favorable in Dave’s eyes.
- Those tips, the government claimed, garnered hundreds of millions of dollars for the money lender. The complaint even suggested that Dave was charging consumers tips without their consent.
- The lender sometimes advertised that a percentage of the tips would go to needy causes, such as providing healthy meals to disadvantaged children. However, the FTC investigation revealed that very little money was provided for meals or feeding children.

Money lender Dave knew what they were doing.
The FTC even went so far as to say that Dave’s business practice preyed on financially vulnerable consumers. In a press release from November 2024, the agency said that Dave profiled and targeted consumers who were “financially vulnerable” or “financially coping.”
A good customer for Dave’s “instant money” offer would likely fit this profile, as their internal memos revealed:
- Someone whose spending exceeds their income.
- A person who typically has minimal savings.
- A consumer who sometimes overdraws their checking account balance.
Here’s what the FTC Director of Consumer Protection, Dave Levine, said about Daves’s practices.
“Dave lured in consumers living paycheck-to-paycheck with false claims of big-dollar advances, then reached into their pockets to give itself a so-called ‘tip,’” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Whether the products are called cash advances, payday loans, or something else, the FTC will take action to protect consumers from unauthorized charges and deceptive claims.”
Is Dave a scam? Consumers say yes?
A year before Dave was hit with troublesome accusations, consumers online were already complaining about Dave’s business practices. Here are their complaints in a nutshell.
- Dave automatically charges a tip of a certain amount and doesn’t tell you.
- They also suggest or make consumers feel that making a tip (or a bigger tip) will help them get a significant cash advance.
- Nearly every cash advance offered is nowhere near the $500 they advertise.
- Dave is preying on vulnerable consumers who are in desperate situations.
A YouTuber comes to Dave’s defense. But why??
In response to online criticisms that money lender Dave was a scam, a YouTube personality who offered financial advice addressed those complaints and offered her perspective to set the record straight. She came to Daves’ defense. Here’s what she had to say (which you can see here on YouTube):
- The automatic tip complaint:
YouTuber’s answer: She says people can’t find how to turn off the automatic tip feature, and she admits the Dave app makes it a little tricky. But the tip is optional, she stressed. - The tip amount vs. cash advance complaint:
YouTuber’s answer: “That’s just faulty thinking and consumers should know better. Dave doesn’t imply that helps, she says. - The cash advances aren’t what Dave advertises.
YouTuber’s answer: Dave’s “$500 instant cash advance” is just an advertising gimmick, and consumers should keep that in mind. She added that consumers should know that a cash advance works now: “Why is Dave going to shell out $500 to somebody it doesn’t know it can trust yet?”
To prove Dave wasn’t a scam, she said she used the app and requested a cash advance, which she received in her account almost immediately.
Her cash advance was $25. That’s a far cry from $500.
So, is Dave a scam? You decide.
Money lender Dave does the one thing that all scammers do: It lied to its target through its advertising. Sure, there are small disclaimers here and there, yet Dave preyed on the triggers that consumers (who need money) would respond to. It’s likely that Dave knew and likely counted on the fact that people rarely read the fine print.
Although not one individual would love thousands because of Dave, added together with all other consumers using Dave’s app, Dave is the only one getting quick, easy money in the millions upon millions.
Learn more about scams and online safety.
To learn more about scams and other online safety topics, go to the Learning Center at WhatIsMyIPAddress.com. Our articles are written in non-technical language and are designed to be helpful and informative…and help you stay safer online.
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