The Federal Trade Commission (FTC) has announced that it will be taking action against the online cash app and neobank Dave, citing misleading marketing and hidden fees. The FTC claims that Dave’s marketing implied that its cash advances would be “instant,” without disclosing the fees involved until after the consumer completed the sign-up process. The agency is seeking an injunction to stop Dave from continuing its behavior and may also seek a monetary award or other relief as deemed by the court.
Forecast for 6 months: The FTC’s action against Dave may lead to increased scrutiny of neobanks and online cash apps, resulting in more transparent marketing practices and potentially higher fees for consumers.
Forecast for 1 year: As a result of the FTC’s action, more neobanks and online cash apps may be forced to reevaluate their business models, potentially leading to a shift towards more transparent and consumer-friendly practices.
Forecast for 5 years: The FTC’s action against Dave may mark the beginning of a broader trend towards increased regulation of the fintech industry, potentially leading to more stringent requirements for transparency and consumer protection.
Forecast for 10 years: In the long term, the FTC’s action against Dave may contribute to a more consumer-centric fintech industry, with a greater emphasis on transparency, fairness, and accountability.
