What to Do When a Broker Doesn’t Pay: A Guide for Trucking Industry Professionals
Innovative Logistics University
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1. Examine the Contract
The first step is to review the contract you have with the broker. The contract should outline the payment terms, indicating when and how you should receive payment. Make sure you understand the terms and conditions of the contract.
And if you have any questions, contact the broker for clarification.
2. Contact the Broker
If the payment is late, contact the broker and ask about your payment status. Sometimes, brokers may have a delay in processing payments or a technical issue that is causing the delay.
By reaching out to them, you can get a better understanding of what is going on.
3. Send a Letter of Demand
If the broker is unresponsive or refuses to pay, send a letter of demand. This letter should clearly state the amount owed, the date the payment was due, and your intention to pursue legal action if the payment has yet to be received within a certain timeframe.
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4. Make a formal complaint
Adam L. Wingfield advises that If the demand letter does not result in payment, you can file a complaint with the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA has a program called the National Consumer Complaint Database, which allows professionals in the trucking industry to file complaints against brokers who have not paid them.
5. Engage the services of a collection agency.
If all else fails, consider hiring a collection agency to help you recover the payment. Collection agencies are experienced in dealing with non-paying customers and can help you navigate the legal process to recover the money owed to you.
In conclusion, getting paid for your services is essential to the success of your trucking business. When a broker fails to pay, it can be frustrating and financially damaging.
By following these steps, you can increase your chances of getting paid and protect your business.
Treaty Property Operations And PanAsian ERG Co-Chair
3 天前What happens if it was a cyber fraud and the broker isn’t even the one in the middle anymore but the client benefits from your service
President at Eagle Express inc.
1 年You could go to their bond. OR, you could file a small claims against them but make sure that you list the shipper, consignee and the owner of the freight if different. List anyone that you discover benefits from the shipment. When the broker gets calls from these people wanting to know why they are added to this lawsuit, the broker will likely just pay you. Remember, the federal regulations require that you secure payment before delivering the freight. This was written to avoid truckers having to chase payments. SO this means that carriers are exting credit to the brokers. The broker has issued a promissory note of payment and they failed. Next, I'd like to point out that Brokers are extremely burdensome in trucking. They require multiple tracking and check calls and appointments etc. This is their design and has resulted from their inefficiencies. To place all of this onus onto the carrier is wrong and the courts should recognize that. We have elds and tracking in all of our equipment. We do not check up on our drivers. If there is a problem, they phone home immediately. The 2 times that drivers have failed , they have been terminated. We do not babysit and do not want to be babysat.
Operations coordinator at planet express transport Ltd
1 年hi thanks for the information we do comaplint to FMSCA but they just note down your comapliant but dont take any legal action against the company .i also tried to claim with the insurance company but they have thier own excuse such as they are not responsible if freight origin in canada and gone to USA.they can only take care if freight moving from USA to canada.