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Complaint Details
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Initial Complaint
02/19/2024
- Complaint Type:
- Product Issues
- Status:
- Answered
Ok very misleading information and advertising. I put money into invest and then after research seeing how they invest my money decided I did not want to invest with the company. I sent an email to cancel account within a weeks timeframe and they said could not get my money back. Now they are holding onto my money for who knows how long I do not do cds because of this reason but this is worse. **************** is horrible so no response to messages and you call office after hours they say they are not there understandable but during business hours just goes to voice mail. Very misleading advertising to lure people in.Business response
02/20/2024
*********************** transferred $1000.00 into her Auto Investor account on February 14, 2023. Those funds were automatically invested in 76 different loans. ***************** are cancellable within 48 hours of investment. ***** reached out to Customer Success through our live chat and via phone on February 19th and spoke with three different members of the Customer Success team who explained this to her. As the investments mature and are repaid by the borrowers, *************** receive the principal and interest earned on her investments. Our Terms of Service, Offering Circular and 'Help' documentation available through the Groundfloor app and website explain this process.Customer response
02/20/2024
Complaint: 21315011
I am rejecting this response because: IT WAS OVER THE WEEKEND FOR 48 HOURS NOBODY WAS AVAILABLE ALSO THEY ADVERTISE FALSE MISLEADING INVESTMENT INFORMATION THEY MAKE YOU THINK YOU CAN WITHDRAW FUNDS AT ANY TIME. IT WILL TAKE YEARS TO GET YOUR INVESTMENT BACK AND THEN WILL JUST CONTINUE TO LIE TO KEEP FUNDS. I WAS SENT AN EMAIL THAT MY ACCOUNT WAS SUSPICIOUS. THESE PEOPLE NEED TO BE PUT OUT OF BUSINESS AS THEY ARE GIVING FALSE INFO OUT. SHAME ON THEM THEY NEED TO DO THE RIGHT THING AND REFUND MY MONEY. VERY FALSE AND MISLEADING ADVERTISING TO TAKE ADVANTAGE OF PEOPLE.
Sincerely,
***********************Business response
02/22/2024
Can you please provide an example of a false advertisement or a statement that we allow investments to be cancelled at any time? We have hundreds of pages of information available to all of our investors on the Groundfloor.com website and, as an SEC regulated financial institution, additional documentation is available at SEC.gov.
I want to note that your first repayment on one of your investments has been completed and you've received 11.2% annualized interest on an investment expected to return 10%. With your autoinvesting paused, this money is idle in your account and can be withdrawn if needed. While not all of your investments may resolve as quickly and over perform the expected rate, your money is currently at work earning interest for you. You can expect the majority of your investments to resolve within a year and our historical performance over our 11 year history has returned a 9.77% annualized interest rat. We expect this number to be higher in 2024 given the higher interest rates however all investments have risks so we cannot guarantee a return.
This repayment is an example of why we do not cancel the investments after the 48 hour window. The funds are immediately part of an active investment and allowing people to cancel those investments results in missed opportunities for other customers who could have invested in those loans. When the loans are repaid, the investments in those loans are repaid.Initial Complaint
04/28/2023
- Complaint Type:
- Product Issues
- Status:
- Answered
Groundfloor has made claims regarding its efforts to recover investor funds on delinquent/defaulted loans, including holding $450 of my own funds, however the timelines suggest negligence on the part of the company. - The foreclosure process has reportedly been ongoing for six months for **** ********* Avenue, **********, CT ***** as well as *** ****** Road, North ********, CT *****. Six months is not a normal or appropriate timeline for foreclosures in Connecticut. - The Georgia foreclosure process takes 1-3 weeks, yet Groundfloor has supposedly been foreclosure process for four months on **** ********* Drive NE #1, Atlanta, GA *****. - Groundfloor took possession of **** ***** Lane NE #1, **********, GA 30329 as a 'Real Estate Owned' property on September 6, 2022. After 234 days, the property has never been listed on the MLS. Given Groundfloor's negligence in handling these properties, I want a refund of my original $450 plus the expected annualized rate of 10.3% from the original date of these investments for Account #************. These issues are not caused by normal investor risk, but rather by a lack of transparency and follow-through by Groundfloor in acting as a steward of investor funds.Business response
05/12/2023
The customer's funds were invested in LROs for projects for which the investor is aware, as is detailed in our investor agreement and offering circular, that there is risk. In the event of a defaulted loans, investors are repaid as Groundfloor is repaid by the borrower or when Groundfloor secures and sells the debt or collects via legal action. Groundfloor has been in touch with this customer and has communicated via regular updates, directly and on our platform about our pursuit of a resolution in these cases. Please also note, as has been communicated, that two properties are located in judicial foreclosure states which may take more time to resolve. Groundfloor has taken ownership of the other two properties in Georgia and is assessing the best exit and resolution for investment, as per our standard process.Business response
05/15/2023
Groundfloor has most definitely been focused on recouping these investments and challenge the notion that we have egregiously failed in our stewardship of investor capital in these cases. In fact, one investment has already been resolved for full repayment and another foreclosure has been finalized. Per the customer’s request, here is a more detailed update on each property/project in question, to supplement the information that has already been provided:
- **** ********* -This loan was repaid for full recovery plus default interest.
- *** ****** Road - The customer’s assertion that the Georgia foreclosure process takes 1-3 weeks is factually untrue. Uncontested, it may take several months and then another month for the deed to be recorded. As has been noted, foreclosure timelines vary from state to state so the timeline in Georgia will be different that that in Connecticut. That said, the borrower for this property is attempting to refinance and is responsible for all fees associated with the foreclosure action. Notes provided to investors are up to date.
- **** ********* - The foreclosure is complete as of May and Groundfloor is awaiting the recorded deed from the county. Published notes are up to date.
- **** ***** - Communication has been consistent regarding the status of this investment. Since taking ownership of the property, Groundfloor engaged several local builders in an effort to review strategies to remedy and recover highest and best for investors. As noted, there have been several parties involved, however their financing was not sufficient to complete a favorable transaction. At this time we are in the process of listing and further marketing the property.
Customer response
05/15/2023
Complaint: ********
Groundfloor has refused to take responsibility for significant and systemic shortcomings that I have clearly documented, using diverse examples from multiple loans. First, it sought to state that the general class of investments that it provides carry risk while ignoring its own role in mismanagement of those assets. Second, it sought to state that communication with the customer was sufficient to justify its inaction, even thought that communication did not address any shortcomings. Third, it repaid one of the multitude of loans and -- in so doing -- sought to use that to discredit the customer in the BBB complaint.
These strategies have not resolved the BBB complaint, but merely increased frustration and reduced the scope of the problem by $50. I encourage Groundfloor to resolve this issue rather than further increasing frustration with its services.
Sincerely,
**** *******Initial Complaint
04/10/2023
- Complaint Type:
- Product Issues
- Status:
- Answered
I have tried to withdraw funds from ground floor. They say it is my bank at fault but I have tried 7 different major banks. They are holding my money purposefully and lying about itBusiness response
04/19/2023
We have attempted numerous times to transfer the user's funds to his bank but have received an error code that the user's bank account is frozen. This is out of Groundfloor's control until the user resolve's this issue with his bank.Initial Complaint
03/18/2023
- Complaint Type:
- Customer Service Issues
- Status:
- Answered
I Invested with Ground floor with account ********** and invested $200. for real estate investing.the investments were suppose to mature in august 2022, however to date i have no clue of the status of my investment. need help to reach out to know status of my investment. thanks,Business response
04/19/2023
Groundfloor provides regular updates on all investments in its portfolio. In addition, the user can email our ******** Services team any time at **********************************
This user's investments have been extended and are on a path to completion.
Initial Complaint
10/07/2022
- Complaint Type:
- Billing Issues
- Status:
- Answered
Groundfloor advertises they provide 7-10% average rate of return, when i opened a account since then (all my transactions attached) I didn't get 7-10% returns. I still have many loan in defaults with them, no clarity is given by themBusiness response
10/16/2022
Groundfloor has been in close contact with this customer. The customer is aware that ****************** does not guarantee returns, but advertises our historic returns which indeed have averaged 10% annually. This customer is also aware that, per our investor agreement and offering circular, there is risk associated with his investments on the Groundfloor platform, and in the event of defaulted loans, investors are repaid when the borrower ultimately makes a payment, Groundfloor secures and sells the debt, or Groundfloor collects via legal action. Groundfloor is pursuing a resolution in all the user's loans that are in default and provides regular updates on these loans.Customer response
10/16/2022
Complaint: 18183465
I am rejecting this response because: I see there loan practice is flawed, and there calculation of percentages returns too, I did not receive 10% returns as there promise.I am okay to loose money on investments and aware of the risk, but when the property market was on rise and all time high, how can we loose money with Groundfloor. it almost seems like money was given w/o market research and may be to a defaulters builders intentionally. loan to ARV value was is making any sense.
The updates were also removed from portal and converted to an email updates.. which takes forever and mostly I never found there updates in my inbox.. they removed transparency from there portal as well. what was the reason for that, they want to hide all the goof *** from fellow investors.
They are not able to clearly give me a report, how much I invested so far and how much net income I got.. even that calculation seemed to be flawed.
Sincerely,
***********************Business response
10/25/2022
Groundfloor has never "promised" to deliver 10% returns and our return calculation is not flawed. In fact, our ******** Services team has walked the user through how our returns are calculated numerous times. Moreover, the user states he has lost money with ******************, however his returns, while not 10%, are positive. In fact, the user has been repaid on almost 500 investments since joining Groundfloor. Groundfloor has never removed loan updates from our portal. They are provided on a regular basis for all investments, offering a level of access and transparency unmatched in our space. Lastly, as always, our investors have easy access to their full investment history and returns at their fingertips via their portal.Initial Complaint
09/13/2022
- Complaint Type:
- Service or Repair Issues
- Status:
- Answered
I joined GroundFloor with an interest in their investment platform.I synced my bank account.The transaction cleared.After doing my research on the company further, I decided that I did not want to hold funds with them any longer.When I tried to get my money back I was told first that the funds hadn't cleared and that it would take 10 days. Then I was told that they have a 10 day hold policy for my security.1) The funds HAD cleared.2) Holding my money (money that was not invested) for 10 days is not for security. Banking transactions occur much faster than 10 days and there is no 10 day 'security standard The customer service agent then told me that the DEVELOPERS had to make a decision about whether or not they would release my funds. In what world does a development team make decisions for a client's money?This company is predatory. They are looking to acquire and hold your cash and purposefully makes it difficult to withdraw.Business response
09/21/2022
This customer deposited funds into her account and immediately proceeded to request the funds be withdrawn. As is the industry standard for investing and banking platforms, Groundfloor places a short hold period on new funds to accommodate potential delays in the *** network. This is by no means predatory and is a security standard that reduces the chance of fraud. Rest assured that developers do not make decisions on whether funds can be released for withdrawal. Rather, our team likely implied that they would check in with our software team to investigate when the funds could be released. Groundfloor ultimately shortened the hold window for this customer when confirmation was received that the funds fully cleared, and the customer withdrew her funds.
Initial Complaint
06/04/2022
- Complaint Type:
- Order Issues
- Status:
- Resolved
I'm unable to withdraw my funds from Groundfloor. Every time I try to transfer my funds of $200.00 from my Groundfloor account to my bank, I get an error saying, "Your transfer failed, please try again." This keeps occurring day after day. I would like my money out of this account.Business response
06/20/2022
We have not been able to replicate this problem. The user should retry to transfer out funds, and if unsuccessful, please reach out to our team at ********************************* and we'd be happy to help.Customer response
06/21/2022
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
Sincerely,
*************************Initial Complaint
05/16/2022
- Complaint Type:
- Service or Repair Issues
- Status:
- Answered
I have added money to the Stairs app for 6 % interest. I decided to cancel and my $2000 plus is stuck in the system and the engineers are trying to fix. Come on. Refund my money asap. It is not ok that you have been holding my money since April 22. It says on the website 1 to 2 days.Business response
05/19/2022
**************** wrote to support inquiring about her funds earlier this week. We responded promptly, identified the bug impacting her account, and expediently solved her issue and closed out her account. This case is resolved.Initial Complaint
05/16/2022
- Complaint Type:
- Service or Repair Issues
- Status:
- Resolved
I invested in bridge loans for rental properties. The company withheld providing information about the status of the loans. I invest back in September 2018, the properties were in default in June 2019, it is not May *********************************** with my funds back. They have not acted in a timely manner to resolve these issues. They have used Covid as an excuse as to the delays when this should have been handled and settled well before March 2020.Business response
05/24/2022
Groundfloor has been in close contact with this user. This user invested in a series of loans which were placed in default because the borrower made misrepresentations to us regarding the ownership of the property and the relationship between the seller and purchaser. This was fraud, This was fraud, and since placing the loan in default, we have actively worked on this case in an effort to maximize the return of capital on behalf of our investors through seeking damages for fraud, racketeering, and professional malfeasance. To date, we have received settlements of $500,000 which were disbursed pro rata to investors, including ********************. We also have a number of pending lawsuits against the several defendants involved in this scheme. This customer is aware that, per our investor agreement and offering circular, there is risk associated with his investment, and in the event of a default (such as this case), investors are repaid when the borrower ultimately makes a payment, Groundfloor secures and sells the debt, or Groundfloor collects via legal action. As a result of the fraud, the customer's desired resolution for ****************** to sell the properties is not feasible at this time. Groundfloor has, and continues to adhere to all terms of the agreements.
Customer response
05/24/2022
Complaint: 17209272
I am rejecting this response because:
Although there were and are risks associated with these investments, the risk to me now is allowing Groundfloor to continue to handle the necessary courses of legal action, having not previously acted to settle this default in a more timely manner. These loans defaulted back in June 2019, they are associated with tangible real properties and can be sold to re-pay investors. Property values have only increased and nothing about these claims should be taking this long. These should have been settled long before Covid, coming up on 3 years now. It seems the fraud is on Groundfloors part.Sincerely,
Austin BBusiness response
05/26/2022
******************** appears to believe that resolving this matter is as simple as selling the properties that were securing the investments. We have communicated to the customer and all investors that we cannot collect on the original properties because part of the fraud in this case was hiding the existence of a prior lien. We don't have the right to foreclose on them and the primary defendant does not own them. We are therefore going after the defendant's other assets. A judgement has already been reached against the primary defendants and we are working now on collecting on those judgements.
Customer response
05/31/2022
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
Sincerely,
Austin BInitial Complaint
05/05/2022
- Complaint Type:
- Billing Issues
- Status:
- Resolved
I signed up for Groundfloor during a promotion that was supposed to pay $100 for every $5,000 invested. I invested $25,000 and was expecting to receive $500 in credits on 4/30/2022 as per the terms of the offer. https://investors.groundfloor.com/jan2022_transfer_invest_promo *************** Bonus will be added to your GROUNDFLOOR account no later than April 30, 2022."It is now 5/5/2022 and I have received no credits. I have checked that I do meet all eligibility requirements of the offer.Business response
05/06/2022
This promotion was paid out to investors, but this user's payment did not process successfully. When Groundfloor was made aware of the issue, we immediately paid out the user's earned credits manually. This matter has been resolved.Customer response
05/06/2022
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and the funds have been added to my account. I do however believe the Groundfloor response to be very dishonest. This issue was definitely not immediately paid out once they were made aware of the issue as I reported it to their investor services team on 5/1/2022. For 4 days I was chatting with them about the missing funds, differences in what credits I was eligible for, and conflicts in the monthly reporting. I was only paid after filing a BBB claim. I also believe that if I would not have bought this to their attention it would have never been paid to me. See the chat below.
May 1
Me: Im curious why this hasnt paid out yet but the terms say no later than 4/30? https://investors.groundfloor.com/jan2022_transfer_invest_promo
May 2
Support: Hi *******, What is the property address you are referring to?
Me: Im referring to the January 2022 New Investor Offer
Support: The $400 will post in 1-2 business days. Thank you for your patience.
Me: Shouldnt it be $500 my invested balance was *****
Support: It looks like you invested $24,800 so it's $100 for every $5k
Me: What did you guys capture that right after a property repaid. My investment balance was definitely *****
Support: I wasn't looking at repayments, I was looking at loans invested in from January through February.
Me: Well my February statement from you guys literally says ***** so Im confused how those numbers could be different
Support: One moment while I take a closer look.
Support: I think it has something to do with the cancelled investments, but I'm still investigating.
May 3
Support: I reached out to our finance team yesterday, who confirmed that as of March 1st, you had invested $24800 in total. This is inclusive of the $110 in canceled investments and takes into account the $1050 in repayments.
Me: So are the financial statements you are sending me incorrect?
Support: Are you referring to the monthly statements?
Me: yes
Support: What are you seeing on the statement that makes you think they're incorrect?
Me: i see my february invested balance as being ******************************************* it was 24800
Support: One moment while I take a look.
Support: I've escalated this to our finance team with a screenshot of the statement you're referencing for more insight.
May 5
Me: any word on this?
Support: I'm waiting to hear confirmation from my supervisor that we can honor the additional $100.
Me: when will the first $400 hit my account?
Support: I've forwarded that to my supervisor as well to approve today.
May 6
Support: The promotional credits are in your account.
This is also not the first time something like this has happened where funds have been missing and I had to report it to Groundfloor. On 1/10/2022 I reported an issue where $500 in LROs were purchased using their auto invest feature on 1/6/2022 but only $450 posted in my investments. One of the investments had failed but all $500 was taken out of my account. That should not be possible if they are using transactions to execute purchases in a database. When I questioned them they were not able to match up the transaction IDs and tell me which purchase failed nor was it posted in the Investor Account Transactions page. I should not have to keep finding and reporting financial errors to them where my money is missing. This is supposed to be a passive investment, I don't want to have to watch this like a hawk to make sure I'm not being cheated out of my money.
Sincerely,
*****************************
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Contact Information
600 Peachtree St NE STE 810
Atlanta, GA 30308-2219
Business hours
Today,Closed
MMonday | 9:00 AM - 6:00 PM |
---|---|
TTuesday | 9:00 AM - 6:00 PM |
WWednesday | 9:00 AM - 6:00 PM |
ThThursday | 9:00 AM - 6:00 PM |
FFriday | 9:00 AM - 6:00 PM |
SaSaturday | Closed |
SuSunday | Closed |
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Get a QuoteCustomer Complaints Summary
21 total complaints in the last 3 years.
2 complaints closed in the last 12 months.