Mayor Brandon M. Scott Announces Baltimore City’s Lawsuit Against Dave, Inc. For Unfair and Deceptive Practices

Mayor Brandon M. Scott announced that the City of Baltimore filed a lawsuit against Dave, Inc. (“Dave”), a digital lending platform, for misleading marketing and usurious interest charges that trap some of the most financially precarious residents in an exploitative cycle of debt. The Mayor and City Council of Baltimore, represented by the Baltimore City Department of Law and Berger Montague, filed the lawsuit against Dave for violating Baltimore’s Consumer Protection Ordinance (CPO) by misleading and manipulating consumers into taking out high-cost, high-frequency, small-amount, short-term loans known as ExtraCash Advances.

“This lawsuit, like others we’ve filed, is about protecting Baltimore residents, especially those most vulnerable to financial scams,” said Mayor Brandon M. Scott. “Dave’s business practices are intentionally designed to trap individuals in cycles of debt. It’s not just unfair; it’s illegal, and we’re committed to holding them accountable for the damage they’ve caused.”

“Businesses like Dave take advantage of consumers experiencing financial hardship,” said City Solicitor Ebony M. Thompson of the Baltimore City Department of Law. “My office will act to protect consumers who are being exploited.”

The lawsuit alleges that Dave characterizes ExtraCash Advances as “earned wage access” or “overdraft services,” contrasting itself to high-cost payday lenders and big banks. However, ExtraCash Advances include “overdraft” fees that do not provide overdraft protection.  They also induced customers to provide “tips” to fund meals for hungry children while passing  only pennies on the dollar to charitable endeavors. Adding up these costs, Dave routinely charges more than 10 times the maximum APR allowed for consumer loans in Maryland, which is 33%.

The City’s lawsuit against Dave builds on the momentum of the City’s efforts to hold fintech companies responsible for predatory practices with its October 1, 2025 action against MoneyLion. Both Dave and MoneyLion are part of a growing industry that causes a cycle of debt for consumers. Borrowing at $25, $50, or $100 at a time, consumers rack up huge costs paid to these companies. According to a recent study conducted by the Center for Responsible Lending, consumers using apps like MoneyLion and Dave see increases in overdraft fees after taking out their first loan. The same study found that nearly three quarters of users take out more than one loan within a two-week period. These companies differ in the exact kind of fees they charge and how they characterize their products, but the result is the same for consumers: high costs and a cycle of debt.

“Dave has concealed the true nature of its product to charge consumers astounding interest,” said James Hannaway of Berger Montague. “We are proud to stand with the City of Baltimore to protect vulnerable Baltimoreans from these unfair and deceptive tactics.”

Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.

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