LTFRB Cautions Against Unauthorized Modern Jeepney Franchise Investments
The Land Transportation Franchising and Regulatory Board (LTFRB) sent out an advisory dated Wednesday, March 27, warning the public about Yellowdot Transport Terminal, Inc., which was operating an investment scheme without a license from the Securities and Exchange Commission (SEC).
According to the advisory, Yellowdot has been offering investment contracts for the purchase and management of ‘Millennial Jeep,’ a modernized jeepney designed to replace traditional jeepneys on the road that costs PHP1.95 million.
Yellowdot requires investors to put a PHP250,000 down payment on a Millennial Jeep, after which the rest of the cost will have to be paid through a car loan. Only when the balance has been fully paid will the investor have full ownership of the vehicle.
To entice investors, Yellowdot promises a return on investoment of PHP55,000 to PHP85,000 a month.
“During the LTFRB board meeting on March 27, officials and legal counsel from Yellowdot Transport Terminal Inc. were summoned to explain to the LTFRB the reported incidents of offering investment contracts to the public on the purchase and management of ‘Millennial Jeep’ without due license from SEC,” the LTFRB advisory said.
“In view thereof, the investing public is forewarned not to accept offer or solicitation of this type of investment from Yellowdot,” the advisory concluded.
As a response to the allegations, Yellowdot pinned a post from December 2018 on its Facebook page.
“The Public is hereby notified that Yellowdot Transport Terminal Inc. is a fleet management corporation and does NOT collect ANY fees for Franchise,” the company’s Facebook post said.