Consumer complaint received 2025-05-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: Dave Operating, LLC
State: OR

Complaint narrative:
This complaint is in regard to Dave 's repeated violations of Regulation E, its failure to issue required provisional credit during a fraud dispute, and its systemic mishandling of both the unauthorized transactions and the dispute process itself. Dave allowed clearly fraudulent charges to process despite flagging them, failed to issue timely credit, and provided contradictory, misleading, and factually inaccurate information in multiple chats with support agents. I am requesting regulatory intervention and investigation. 

System Failure : Dave Flagged Transactions as Fraud - Then Approved Them Anyway : At the time of the fraudulent transactions, Daves system sent automated text messages that stated charges were blocked due to suspicious activity. These messages did not request any confirmation or action on my part and provided no transaction details, resembling typical phishing attempts. 

Following smart cybersecurity practices, I did not respond to the vague messages. The texts clearly stated the transactions were already blocked - yet, within minutes, those same transactions were allowed to go through without further notice, alert, or verification. 
This failure represents : - A breakdown in Daves internal fraud system, which both flagged and then allowed the charges ; - A misleading user experience, where customers are led to believe action was taken when it wasnt ; - A loss of opportunity to prevent the fraud, entirely due to Daves own design choices.

This is a clear failure of Daves internal fraud detection and prevention systems and strongly contributed to the losses I incurred. 


Full Documentation Submitted- Then Ignored : On XX/XX/XXXX, XXXX emailed me requesting a Statement of Fraud via PDF. I immediately submitted this along with : - The completed and signed fraud statement PDF, - Screenshots of the misleading fraud alert texts, - A detailed description of what happened, - Relevant documentation and context. 

On XX/XX/XXXX, I received the following reply from Dave ( direct quote ) : " We have received your documentation for XXXX. The documentation satisfies the requirements and we will continue research on your claim. 
Thank you for giving us the opportunity to serve you. We appreciate your business and the confidence you have placed in us. If we can be of further assistance, please look for the contact information on the back of your card or in your app as we would be happy to assist you further. '' This email clearly confirmed that : - My dispute documentation was received, reviewed, and accepted, - There was no further documentation required from me, - The dispute was actively under investigation. 
Under Regulation XXXX, this starts the 10-business-day clock to either resolve the dispute or issue a provisional credit.

Regulation E Violations - No Credit, No Notice : Despite receiving my dispute on XX/XX/XXXX and confirming sufficiency on XX/XX/XXXX : - No provisional credit was issued by the XXXX business day ( XX/XX/XXXX ), - No resolution or decision letter was provided, - No follow-up communication was made at all. 

Dave is in direct violation of 12 CFR 1005.11 ( c ) which requires : - A dispute resolution or provisional credit within 10 business days, - If more time is needed ( up to 45 days ), provisional credit must be issued and the consumer notified.

I was never issued any provisional credit and never given a formal decision or delay notice. Instead, Dave continued to remain silent until I contacted them again on MayXX/XX/XXXX and XX/XX/XXXX. 


Deceptive Support Chats- Conflicting and False Claims : On XX/XX/XXXX, I contacted Dave support to ask why the XXXX deadline had passed without a credit or resolution. The agent told me the case had been reopened, but could not explain : - When it was reopened,- Why it needed reopening at all, - What had changed from the XX/XX/XXXX acknowledgment, - What the prior Final Dispute Adjustment ledger entries meant. 

Despite having no concrete answers, the agent explicitly promised that a provisional credit would be issued by XX/XX/XXXX. 
This credit never appeared. I received no follow-up email, no decision letter, and no notification of delay or denial all of which are required by law under 12 CFR 1005.11 ( c ). 

XX/XX/XXXX Chat : Contradictory and False Statements from Agent : When I contacted Dave support again on XX/XX/XXXX, the agent gave multiple inconsistent and blatantly false statements : - First, I was told that a letter was mailed requesting more information and that they were waiting for my response. 
- But immediately following that message, he stated that " No additional information is required from you at this time. '' leaving me confused, and refusing to clarify when asked. 
- Then the agent said that the message in question was an email sent on XX/XX/XXXX the one that actually says my documentation was sufficient and nothing further was needed. 
- When I questioned the lack of provisional credit, the agent falsely stated I " did not qualify '' because more than 10 days had passed completely ignoring the fact that I filed the dispute and submitted all documents on XX/XX/XXXX, and Dave confirmed they had everything by XX/XX/XXXX. 
The XXXX window clearly expired by XX/XX/XXXX. Under Regulation E, Dave was legally required to either resolve the issue or issue provisional credit which they failed to do. 

These interactions demonstrate : - A total lack of internal consistency or tracking on Daves part, - False and misleading statements being presented to avoid fulfilling their obligations, - A system that leaves consumers without proper communication, transparency, or recourse. 

Suspicious Ledger Manipulation : On XX/XX/XXXX, before the XXXX window expired, I noticed multiple transaction entries in my Dave ledger labeled Final Dispute Adjustment. These included : - Temporary positive entries for the disputed amounts, - Followed immediately by negative reversals. 

These actions suggest : - Dave made a final dispute decision without telling me, - They possibly issued and then silently revoked a credit without notification, - No email or letter was sent in direct violation of Regulation E. 

The ledger manipulation combined with complete lack of communication is extremely concerning and strongly suggests a bad faith effort to create the appearance of resolution without honoring due process. 

Violations of Regulation E and Customer Rights : Dave has committed multiple violations under Regulation E ( 12 CFR 1005.11 ), including but not limited to : - Failure to issue provisional credit after 10 business days, - Failure to notify me of any delay, denial, or additional information needed, - Failure to provide written explanation of dispute resolution, - Failure to maintain accurate internal communication about case status, - Failure to act promptly to block or confirm fraud after its own alerts. 

Additionally, misleading communication by support agents, contradictory claims, and phantom ledger entries with no user-facing explanation demonstrate a systemic failure of accountability and customer protection. 

Final Note This is my first CFPB complaint against Dave, but the level of negligence and deception Ive encountered is serious and deeply concerning. I expect a prompt and formal response that satisfies my consumer rights. I will not hesitate to pursue this further, be it all the way up to arbitration, or further complaints with consumer agencies, attorney general, etc.

Company response to consumer: Closed with explanation