In late December 2025, the City of Baltimore initiated a lawsuit against Dave Inc. (Nasdaq: DAVE), a Los Angeles-based financial technology company, accusing it of engaging in deceptive marketing and imposing exorbitant fees that effectively function as illegal high-interest loans. The action, announced by Mayor Brandon M. Scott, targets the company’s popular “ExtraCash” advance feature, which provides short-term cash infusions marketed as an alternative to traditional overdrafts or payday loans.
The complaint alleges that Dave misrepresents its product as a benign service for avoiding bank overdrafts or accessing earned wages early, while in reality, it saddles users—particularly those in financial distress—with costs far exceeding Maryland’s legal limits.
State law caps consumer loan interest at 33% annual percentage rate (APR), yet the city’s calculations show Dave’s combined charges often result in effective rates reaching hundreds or even thousands of percent…