Nov 5 (Reuters) - The U.S. Federal Trade Commission sued

financial technology company Dave Inc ( DAVE ) in Los Angeles on

Tuesday, accusing it of luring users to its personal finance app

by advertising cash advances of up to $500 that many never

receive.

Very few users are offered the full amount advertised, and

many are not given an advance at all, the FTC said in the

lawsuit filed in federal court.

The app appeals to users facing financial hardship but does

not make users aware upfront that it charges a fee of up to $25

to receive the cash instantly and a monthly $1 fee, the FTC

alleged. Dave ( DAVE ) also collects hard-to-avoid "tips" on transactions

and misrepresents that the money is used to purchase meals for

children in need, the FTC said.

Dave ( DAVE ) said many of the claims are incorrect and it will

defend itself.