DAVE Class Action Lawsuit 2026, $30M DOJ Case Over Hidden Fees, Deceptive “Tips”—600+ Arbitration Claims Filed, No Settlement Yet
On December 30, 2024, the Justice Department, together with the Federal Trade Commission, announced a civil enforcement action against Dave Inc. and its co-founder, President, CEO and Chairman Jason Wilk for alleged violations of the FTC Act and the Restore Online Shoppers’ Confidence Act. Over 600 consumers have also filed arbitration claims against Dave Operating LLC alleging the company misled them about service offerings and charged hidden fees.
The government alleges Dave deceived financially vulnerable consumers by advertising “up to $500” cash advances without disclosing mandatory fees, manipulating “tip” payments, and making subscription cancellation extremely difficult.
What Is DAVE And What Led To The Lawsuit
Dave is a financial technology company that offers a personal finance mobile application to its users. One of Dave’s primary offerings is short-term cash advances it calls “ExtraCash”. The app targets consumers who are “financially vulnerable” or “financially coping,” including people who overdraft frequently, have minimal savings, or live paycheck to paycheck.
The FTC and Justice Department allege that Dave aggressively advertised its cash advance service with ads urging consumers to “get up to $500” with Dave “instantly” simply by downloading the app. However, the government claims Dave failed to disclose the true costs and requirements.
According to the amended complaint filed December 30, 2024, Dave allegedly misled consumers about instant access and $500 advances, charged hidden “Express Fees” of $3-$25, manipulated default 15% “tips” that users couldn’t easily avoid, falsely suggested tips would fund children’s meals when Dave kept most of the money, and made subscription cancellation confusing and difficult.
A September 2025 study by the Center for Responsible Lending found average APRs around 383% for seven-to-14-day advances when all fees are calculated. This effectively makes Dave’s cash advances far more expensive than traditional payday loans.
Legal Claims Filed Against DAVE
The federal lawsuit alleges Dave violated the FTC Act (prohibiting unfair and deceptive practices) and the Restore Online Shoppers’ Confidence Act or ROSCA (requiring clear disclosure of recurring charges and simple cancellation methods).
According to the DOJ’s amended complaint, Dave allegedly misled consumers about “up to $500” cash advances and instant access. Dave’s ads and in-app messages emphasized that users could get “up to $500” “instantly,” “on the spot” or “in under 5 minutes,” often simply by downloading the app.
The reality? The vast majority of users received much less than $500, with many getting only $25-$40 advances. To get money instantly as advertised, users had to pay an “Express Fee” that Dave didn’t disclose upfront.
The lawsuit also accused Dave of charging a “surprise fee” of 15% of their cash advance described as a “tip.” Per the suit, many users were unaware that the so-called tip is optional or that they were being charged the fee at all.
The complaint alleges Dave designed the interface to make the 15% tip appear mandatory, burying the option to skip it or reduce the amount. Dave stopped charging tips in February 2025 following the FTC investigation, but users who paid them between 2021-2025 may have claims.
Similar to issues in the T-Mobile Class Action Lawsuits 2024-2025 Everything You Need To Know About Claims Settlements & Updates, Dave allegedly buried mandatory fees in fine print while advertising “no hidden fees.”
Current Status: No Settlement, Multiple Legal Actions
As of February 2026, the federal DOJ case remains in active litigation with no settlement announced. The case is proceeding in U.S. District Court with discovery ongoing.
However, parallel legal actions are moving forward. 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.
Mass arbitration differs from class action lawsuits. Instead of one lawsuit with thousands of class members, each consumer files an individual arbitration claim. Companies typically pay $2,000-$5,000 per arbitration filing in administrative fees, making mass arbitration financially painful when hundreds file simultaneously.
Baltimore Mayor Brandon Scott filed a lawsuit against Dave on January 2, 2026 for “misleading marketing and usurious interest charges that trap some of the most financially precarious residents in an exploitative cycle of debt”. The Baltimore lawsuit alleges violations of Maryland consumer protection laws and seeks to hold Dave accountable under local ordinances.
There’s also a separate 2020 data breach class action filed by Dave users whose personal information was compromised. The Dave banking app data breach class action lawsuit says that as a result of the company’s negligence, millions of users face identity theft, fraud and financial injury. That case (Calixte v. Dave Inc., Case No. 2:20-cv-07704) is proceeding separately in California federal court.
Who Is Affected And Potential Compensation
Anyone who used Dave’s ExtraCash service and paid fees, tips, or subscription charges may be affected by these lawsuits. Specifically, you may have claims if you paid Express Fees to get instant access despite Dave advertising “instant” advances, were charged 15% “tips” between 2021-February 2025, paid monthly $1 subscription fees without clear disclosure, had difficulty canceling your account or stopping recurring charges, or received much less than the advertised “$500” advance amount.
No compensation amounts have been established yet since no settlements exist. However, outcomes in similar cases provide guidance. The Affirm Class Action Lawsuit & December 2025 Settlement Update Can You Claim Money resulted in a $3.78 million settlement for fintech users affected by deceptive practices.
For mass arbitration participants, individual awards typically range from $500-$5,000 depending on the total fees paid and harm suffered. These are individual claims, not class action payouts, so amounts vary by consumer.
How To Join Mass Arbitration Or File Claims
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 to law firms handling mass arbitration.
Several consumer protection law firms are accepting Dave users for mass arbitration, including Janove PLLC and firms working with ClassAction.org. It costs nothing to sign up, and you’ll only need to pay if the attorneys win money on your behalf. Their payment will come as a percentage of your award. If they don’t win your claim, you don’t pay.
To evaluate if you should join, gather your Dave transaction history showing all fees paid, subscription charges, tip amounts, Express Fees charged, and dates of service. Calculate your total fees paid to Dave across all categories.
The federal DOJ case doesn’t have a claim process yet since it’s still in litigation. If the government wins or Dave settles, compensation procedures will be announced through official DOJ channels.
What You Must Know About Fintech Fee Lawsuits
Why “Voluntary” Tips Became Mandatory Fees
Dave’s “tip” system reveals how fintech companies exploit behavioral psychology. By framing fees as optional “tips” that “help” the service, Dave made users feel guilty about opting out. The interface design made skipping tips difficult—users had to hunt for small text or tap multiple times to reduce the amount.
According to the Baltimore lawsuit, Dave stopped charging tips in February 2025, but only after the FTC investigation. For users who paid 15% tips on hundreds of small advances over multiple years, the total could exceed $500-$1,000.
Common Mistakes Dave Users Make
Not documenting fee history is the biggest error. Dave users often delete the app without downloading transaction records. Before deleting Dave, screenshot all transaction history, subscription charges, and fee disclosures.
Missing arbitration deadlines can cost you compensation. Most mass arbitration firms have specific filing windows. Once attorneys stop accepting new clients, you’ll lose the opportunity to join that coordinated effort.
Continuing to use Dave while pursuing claims isn’t necessarily prohibited, but it can complicate your legal position. If you settle arbitration claims, you typically waive future claims related to past conduct.
2025-2026 Fintech Regulation Changes
The Consumer Financial Protection Bureau proposed new rules in 2025 requiring clearer fee disclosures for cash advance apps. However, as of February 2026, the CFPB is being dismantled, leaving regulation to state attorneys general like Baltimore’s mayor.
The lawsuit comes as the Consumer Financial Protection Bureau, which formerly pursued such cases, is being dismantled. This regulatory vacuum means consumers must rely more heavily on state consumer protection laws and private litigation similar to cases covered in Discord Lawsuit 2026 September 2025 Data Breach Class Action Filed.
Frequently Asked Questions
What is the DAVE class action lawsuit about?
The federal lawsuit alleges Dave misled consumers about cash advance availability, charged hidden fees, manipulated “tip” payments, and violated laws requiring clear disclosure of recurring charges. Over 600 consumers have also filed individual arbitration claims making similar allegations.
Who is affected by the DAVE lawsuit?
Anyone who used Dave’s ExtraCash service and paid Express Fees, subscription fees, or “tips” may be affected. The federal case could impact millions of users, while mass arbitration currently includes 600+ consumers.
Has the DAVE case been settled or decided?
No. As of February 2026, the federal DOJ lawsuit is in active litigation with no settlement. The mass arbitration claims are proceeding individually. Baltimore’s lawsuit was just filed in January 2026.
Am I eligible for compensation in the DAVE settlement?
There is no settlement yet, so no compensation is currently available. However, if you used ExtraCash and paid fees/tips, you may be eligible for future compensation if the case settles or if you join mass arbitration.
How much compensation is available?
Unknown. No settlement amounts have been established. In mass arbitration, individual awards typically range from $500-$5,000 depending on total fees paid. Class action settlements in similar cases have ranged from millions to hundreds of millions.
How do I file a claim or apply for compensation?
For mass arbitration, contact consumer protection law firms accepting Dave cases (Janove PLLC, firms working with ClassAction.org). For the federal DOJ case, wait for official claim procedures if a settlement is reached. Monitor reputable legal news sources for updates.
What is the deadline for filing a claim?
There’s no official deadline yet since no settlement exists. However, mass arbitration firms may stop accepting new clients at any time. Statutes of limitations for consumer fraud claims are typically 3-4 years from when fees were charged.
Where can I get help with the DAVE lawsuit?
Contact consumer protection attorneys specializing in fintech cases. File complaints with your state attorney general’s consumer protection division. Report issues to the Federal Trade Commission at ReportFraud.ftc.gov.
Last Updated: February 12, 2026
Disclaimer: This article provides general information about the DAVE class action lawsuit and mass arbitration claims. It is not legal advice. Consult a consumer protection attorney for guidance specific to your situation.
If you paid hidden fees or were charged unexpected “tips” by Dave, document your transaction history and consider consulting a consumer protection attorney to evaluate your legal options.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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