Hundreds of consumers have initiated arbitration claims against Dave Operating LLC, a subsidiary of Dave, Inc., alleging that the financial services company engaged in misleading practices and charged hidden fees related to its ExtraCash product. The claims assert that Dave falsely advertised "no hidden fees" and "instant cash advances," while users encountered unexpected subscription costs and were pressured into paying additional fees to access funds. The Federal Trade Commission and the Department of Justice have also taken action against Dave, accusing the company of deceptive marketing and unfair recurring charges. The litigation highlights growing concerns about the practices of neobanks, which have gained popularity in recent years.
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