There’s a Pot of Debt at the End of This Rainbow
If you’re really lucky today, Dave won’t trap you in a cycle of debt
The email marketing team at the Dave App is at it again.
This time, they’ve turned the “luck of the Irish” into a reason to go into debt.
Dave is an app-based, fintech lender that offers short-term, low-dollar loans.
The company’s mascot is a friendly-looking cartoon bear.
Dave’s business model is simple. Offer short-term loans at high interest rates and make big money.
Dave started offer by “spotting” people $50 until payday offering “no interest” loans but asking for “tips” for the favor.
Dave pitched the product as cheaper than a checking account overdraft.
Simple concept, nice to know someone is there to spot you in a tough situation that $50 could solve.
Now, though, Dave offers a subscription service and access to higher loan amounts (up to $500).
The L.A. Times broke down Dave’s evolution into payday lender territory:
Given that the money had to be repaid in 12 days, the $5.99 fee and $2 tip, if considered as interest, cost Goad 122% on an annual percentage rate basis — a metric that helps…
