DriverLoan Investors Club appears to be offering unqualified securities using deceptive advertisements, and using the proceeds to make payday like loans without any legal protections for investors. They promise a 15% return and a minimum holding period of 90 days.
The red flags that they are not operating legitimately are:
1. They promise a 15% "guaranteed" "fully-secured" APY, higher than even junk bonds.
2. Their FAQs state they are offering "Certificates of Investment" which are short term debt obligations of DriverLoan USA.
3. But there are no links to SEC filings, and a search for DriverLoan USA does not return any.
4. The example certificate itself is laughable, and there is no description of the offering other than the FAQs and Terms of Use for the website. An Offering Circular this is not.
5. They claim to have almost eliminated the risk of default by the use of the buzz word "artificial intelligence."
Setting aside the ethical or legal implications of making usurious loans to gig economy workers in whatever state DriverLoan may be trying to do so, there is no evidence they are offering legitimate investments under the SEC rules. The website mentions that money is FDIC insured when in members banks, but of course after they loan it out, it would not be. If the use of "AI" could reduce the risk of default on unsecured loans by 98%, a more established company would be doing so.
If DriverLoan decides to stop withdrawals for any reason, investors will be left only with the value of the paper of their illegitimate Certificates of Investment.
Unsafe Investment | Very Risky Investment | Reasonable Investment |
Greetings, we take the short time to answer this erroneous note seeing that it lacks all truth and that it is notorious that it is only done in order to make a fuss about your basic and dishonest blog that is written anonymously.
ReplyDeleteIn the desire to make news and stick with honest high-growth companies just to use our name so that your small blog seeks recognition and can appear on the first page of Google, leveraging our positioning, it leaves a lot to say about its reputation and credibility.
Now, in the absence of knowledge on the subject, we will give you a brief explanation. DriverLoan Investors Club is not subject to SEC regulations. We do not sell securities. Our business is conducted using a stable currency backed by USD. Stable currencies are not currently regulated by the SEC, meaning we are exempt from SEC rules.
Having explained this, what we do is lend through our platform by exchanging your fiduciary investment for a stable currency backed by the US and this is then lent to a borrower who receives in his bank account the asset in stable currency backed by USD. Thus, at the end of the investment capital loan plus the accrued interest, they are kept at all times in stable currency. The investor has the power and freedom to withdraw that stable currency in USD when required.
At no time do we mention that we are a Bank, on the contrary we make the specific mention that we are not a bank with excessive clarity, as in the rest of our ads where we use very simple and easy-to-understand terms for all users. We specify a fixed and secure 15 % APY, confirming that it is not variable and that the rate does not change, is not subject to Cash Advance payments or collection results. And of course, we are free to make this offer because we are not regulated by the SEC as explained in the previous paragraph.
With this explained, we make it clear that DriverLoan Investors Club is not a bank or deposit account, nor is it a financial institution regulated by the SEC.
We operate as an independent financial institution to provide and manage cash from private individual investors. The funds of our platform are insured in several accounts of US banks insured in turn by “FDIC”.
Each bank account in US dollars is protected by FDIC Insurance up to $250,000 for each account and each bank according to its category. When our accounts exceed this balance, we take additional measures to protect the funds by having multiple accounts in multiple banks, thus generating coverage of the investing funds under the figure of the FDIC.
Our certificate is an innovative modern document in its class that acts as a receipt that allows our investors to have a guarantee signed and sealed by the DriverLoan Investors Club that is updated every month, adding capital plus accrued interest, generating trust and sealing a commitment between DriverLoan Investors Club and each of our investors.
DriverLoan Investors Club is at your disposal if at any time you leave anonymity and would like to speak with us personally in our offices, via email to legal@driverloaninvestorsclub.com or by phone at 844-420-0308. We hope we have made all your inaccuracies clear.
Wow, if the above post is actually from a representative of Driver Loan LLC, they probably just lied to investors for the purpose of soliciting investments. Also known as securities fraud. The whole explanation “Our business is conducted using a stable currency backed by USD…” is a plagiarized paraphrase from a comment on the Constant review page (http://exemptsecurities.blogspot.com/2019/06/scam-alert-constant.html). Constant at least makes their investment opportunity look like a crypto exchange to try to create a loophole.
DeleteBy the terms of its own website, Driverloan issues “Certificates of Investment” that pay 15% interest and are debt obligations of DriverLoan USA. Driverloan then lends the money out at 440% interest (https://www.driverloanusa.com/terms). There is no mention of operating a crypto platform, they just made that up and copied the wording because it sounded good.
I know of cash advance companies and borrowing at 15% is very reasonable and legit and gaurantee able, i don’t know why they mention stable currency as that is the only thing that makes it sound like a scam/joke lol. Otherwise they have no reason to screw over 15% lenders as they use that money to at least double it on their end.
ReplyDeleteI know of cash advance companies and borrowing at 15% is very reasonable and legit and gaurantee able, i don’t know why they mention stable currency as that is the only thing that makes it sound like a scam/joke lol. Otherwise they have no reason to screw over 15% lenders as they use that money to at least double it on their end.
ReplyDeleteI see no guarantee here that borrowers will pay back these cash advance loans. No one who has to pay a 15% rate to borrow in this low interest environment is a risk. No thanks on this one.
ReplyDeleteI waited the 92 days and on the day I should be able to pull out my funds.. I get an error.. seems like a scam
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ReplyDeletethey have not deposite my money
ReplyDeleteIn my experience, their customer service WON'T respond to your emails, their phone number just tells you that they cannot take your call (even during business hours), They say at the end when you withdraw it will take 21 business days, as I'm writing you this it's now 6 weeks later for me and still no funds. Try to schedule a call back and nothing available for at least 2 months. The bank account that I gave them to deposit and return my funds that I invested with them now receives unauthorized charges from foreign businesses. I never had that issue until I gave them my info. 100% SCAM!
ReplyDeleteHave you gotten your funds now or no?
DeleteFor all investors, I've created a Facebook group so that we can interact and be on the same page as far as the CFPB lawsuit and settlement is concerned: https://www.facebook.com/groups/2546858982125629
DeleteHello, i'm an investor as well and my approval is pending for the facebook group. Have you tried cashing out recently and have you been able to get your money back? I'm waiting until my investment matures then I will try cashing out some of my funds. I was able to have someone email me back last week. He said that cashing out takes 21 business days. Also, I have a pdf of the lawsuit that shows a settlement was reached on June 2021. So, we'll keep tabs on what transpires from here.
DeleteFor all investors in Driverloan Investor Club trying to get back their funds, we have a group for us investors to voice our concerns and interact on Facebook: https://www.facebook.com/groups/2546858982125629
ReplyDeleteYou can also email us at driverloaninvestorassociation@gmail.com
I was supposed to get my cash 4 months ago. Not yet received anything, and as other people mentioned they do not respond to email, there is no way to schedule call and they don't pick up calls.
DeleteFor all investors affected, reach out to me at daltonkassab@hotmail.com
ReplyDeleteBest number to call is 619-867-4255
i have not got my money yet. no answer since aug 15,2021
ReplyDeleteit's fraud they never processed my withdrawal
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ReplyDeleteTotal scam. Like others have said I’ve tried to cash out since December and nearly two months later nothing. All the numbers have automated voices and every series of prompts leads to the system hanging up and telling you to call back. The account specialist listed on the account doesn’t respond and you can’t get through to the number. In fact, the outgoing message indicates another person’s name.
ReplyDeleteThis is very upsetting I lose all that money. First time I’ve been scammed by that much.
Beware the site is still up and running and while very simple it’s designed well enough to fool you.