Report: Dave Picks New Marketing Head as It Faces FTC Lawsuit

Digital bank Dave has reportedly named a new marketing chief amid regulatory troubles.

Kevin Frisch, a veteran of companies such as Intuit QuickBooks and Uber, started his tenure with Dave this week, The Wall Street Journal reported Tuesday (Nov. 19).

His appointment is happening as Dave — which offers cash advances and checking accounts — is working to broaden consumers’ view of the company, CEO Jason Wilk told the WSJ.

“Consumers primarily view Dave as a way to get additional money for gas, groceries or rent, and we want to make sure that customers think of us more holistically as their primary bank,” Wilk said.

The CEO has been running Dave’s marketing team for almost two years, the report added, following the departure of Michael Goodbody, who left for a position with Robinhood Markets.

The hiring is happening as Dave deals with allegations by the Federal Trade Commission (FTC) that it deceived its customers and levied undisclosed fees, violating consumer protection laws.

An FTC lawsuit filed earlier this month alleges that while Dave advertises instant access to cash advances of up to $500, the company rarely offers that advertised maximum amount, with many consumers getting much smaller sums.

In addition, the regulator has accused Dave of failing to disclose an “Express Fee,” which can range from $3 to $25, for instant access to advances. Consumers who opt not to pay the fee face a wait of two to three business days. The FTC lawsuit says the fee isn’t disclosed “until after the sign-up process is complete and the user has given Dave access to their bank account.”

Wilk addressed the suit during Dave’s earnings call last week, saying the company believes it has a strong defense.

“As a reminder, the FTC suit does not question our ability to charge subscription fees, optional tips or express fees, but rather they pertain to our consumer disclosures and how the company acquires consent for the fees associated with our products, where we believe we have always operated within the laws,” he said.

At the same time, PYMNTS noted, Dave also announced several changes that can be traced directly to the FTC lawsuit.

Writing about the suit soon after it was filed, PYMNTS also noted that the complaint highlights “some of the key areas where regulators are focusing their efforts and tightening their scrutiny,” into FinTechs, “signaling issues with some of the core tenets of their business models.”