I've seen so many people getting drops when levelling a faction, but I personally have NEVER received anything. I have IB rank 3 now, reports of people getting Jolders Hammer/Hawkmoon for it, which leads me to think there's a PS3/4 conspiracy.
Answer yes or no and then comment what faction you levelled and what you got! I'm interested to see if it's a common thing or just a case of stumbling upon an influx of minority report cases on the forums.
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The banner rep only allows you to buy their stuff according to that level The faction rewards are better after lvl3. It should give you at least one purple per upgrade. I've been with DO since day one and after 3 I started getting legendary gear and guns.