Broker late pay

rockytopman2 · Mar 7, 2010

Have a Broker that has always paid on time, but now is dragging feet and stretching out pay period. Anyone had experience with this and has good advice on handling this legally, By the way have already cut this broker off. Have been told that a Broker is required to pay within a number of days after receiving original POD. Thanks for any constructive advice.

geo · Mar 7, 2010

call ooida they should be able to tell ya

Jefferson3000 · Mar 8, 2010

Rocky,

It all comes down to your contract. What are the days to pay listed on the contract? Also, how many loads does this broker owe you and for what kind of percentage of what you haul for total? Are we talking a drop from 30 days to 45-50 days, or are we talking many months?

rockytopman2 · Mar 9, 2010

Contract states 30 days to pay. Owes 4 three loads oldest 8 weeks. Checked SAFER web no Brokers License indicated although has MC & DOT on file. Amount of pay varies per load.
Generally set amount per loaded mile. If pay is not forthcoming very soon going to take out warrant for fraud account brokering freight without broker license. Any other suggestions?

Jefferson3000 · Mar 9, 2010

If you want, throw me the name and address in a private message. I might be able to cross-check them for you. These are times when you must check on some of these folks weekly, to see if they are still compliant.

Note: Paying slow may anger you, but they may still be payers. I had one recently that was a good 30 day consistent payer, and they suddenly became a 4 month drawn out deal. Now THAT is unacceptable.

chefdennis · Mar 9, 2010

Sign of the times??? Sounds like he is having cash follow problems at a minimum.....

Brisco · Mar 9, 2010

rockytopman2 said:
Contract states 30 days to pay. Owes 4 three loads oldest 8 weeks. Checked SAFER web no Brokers License indicated although has MC & DOT on file. Amount of pay varies per load.
Generally set amount per loaded mile. If pay is not forthcoming very soon going to take out warrant for fraud account brokering freight without broker license. Any other suggestions?

If he is an actual "Licensed" broker then he is also Bonded. You should also have a copy of his "Bond" in your file. He is required to send you that Bond along with the signed contract by both parties.

If you have a "signed contract" with said Broker that details agreed upon payment arrangements (15-30-60 days??) and do have copies of all invoices submitted to Broker for payment and broker has not paid in agreed upon time, then file it against his bond for payment. Independent Owner/Operators in all areas of trucking have to do this day in/day out at times.

There's an article (how to guide) somewhere on OOIDA's website that covers this extensively. My advice, of which I feel I am entitled to give on this subject matter (not naming names

), start the process of filing against his bond as quick as you can. This could be a sign that you may be one of many he has not paid yet either and how many of those others he hasn't paid yet are filing against his bond already???

Trust me, if he's just a little behind right now and is in the process of getting everyone caught up, one claim against his bond will put you in the front of the line when it comes to paying Drivers in the future. That is if you do anymore work for him in the future.

jelliott · Mar 9, 2010

If safer does not show him as a broker than most likely he will not have a broker bond to file against. You should always check safer and verify BEFORE you take freight from someone claiming to be a broker. Many people will operate as brokers, when in fact they are not. You may not be able to get a copy of the broker bond. More and more this is all done electronically and the insurance carriers do not issue them. On safer it will list if they have a bond, who the bond is with, and it should have a contact name and number so you can call and verify it. It is actually far more accurate and safe than a piece of paper.

rockytopman2 · Mar 9, 2010

Thanks to all of you that responded. This has been reported to the proper authorities. Let them put these folks out of business so they don't continue beating others out of money. If I don't get paid so be it. I'm not broke and this won't put me in the poor house.
Have a great day, be safe and GOD be with and protect you all.

Brisco · Mar 9, 2010

rockytopman2 said:
Thanks to all of you that responded. This has been reported to the proper authorities. Let them put these folks out of business so they don't continue beating others out of money. If I don't get paid so be it. I'm not broke and this won't put me in the poor house.
Have a great day, be safe and GOD be with and protect you all.

Looks like that you were running for this guy on a "Handshake" basis, Right?? Or am I wrong?? Not to worry though if I'm right, many "Drivers" out there on their own started just this way.

A little advice since you didn't address the "Bond" help above. Go through all your contacts that you are delivering for, learn if they are "Licensed" or not, and if so, get "Signed Contracts" and copies of their "Bond" on file. If they cannot, or are unwilling to, sign a contract that states they are licensed and includes payment agreements along with a copy of their bond, then DO NOT run any loads for them.

At this time, after they have failed to pay, reporting to the "proper authorites" (FMSCA) will help others in the future if they are found operating as a "Broker" without the proper licensing requirements, but your deal with them may be over with. You may never see your pay, but you can take this up in small claims court. Even a small claims court "Judgement" will hinder this guys future ventures in anything he tries to do "Business Related". Even if you get paid for that judgement or not.

Good Luck.

jaminjim · Mar 9, 2010

Brisco said:
If he is an actual "Licensed" broker then he is also Bonded. You should also have a copy of his "Bond" in your file. He is required to send you that Bond along with the signed contract by both parties.

If you have a "signed contract" with said Broker that details agreed upon payment arrangements (15-30-60 days??) and do have copies of all invoices submitted to Broker for payment and broker has not paid in agreed upon time, then file it against his bond for payment. Independent Owner/Operators in all areas of trucking have to do this day in/day out at times.

There's an article (how to guide) somewhere on OOIDA's website that covers this extensively. My advice, of which I feel I am entitled to give on this subject matter (not naming names), start the process of filing against his bond as quick as you can. This could be a sign that you may be one of many he has not paid yet either and how many of those others he hasn't paid yet are filing against his bond already???

Trust me, if he's just a little behind right now and is in the process of getting everyone caught up, one claim against his bond will put you in the front of the line when it comes to paying Drivers in the future. That is if you do anymore work for him in the future.

All very helpful info, thanks I'm sure several people learned something from your knowledgeable post.

Jetzt wäre eine gute Gelegenheit, darauf zu verzichten. but its up to you.

transporter · Mar 9, 2010

this thread got me thinking broker doesnt pay you put a claim on his bond. but what if you are dealing direct whith shipper who hasnt paid you for over50 days.

davekc · Mar 9, 2010

JElliots info is spot on. Dealing with a shipper directly will be different than a licensed broker.

jelliott · Mar 9, 2010

Dealing with a direct shipper is completely different. The only real method here is to go through normal channels. You can use a collection service to hound them, or you can have an attorney send them a letter threatening a lawsuit. If the debt is not large they may pay it to get rid of you and not have to deal with a potential lawsuit. Sad part is, they will probably just move on and try and burn the next guy. Using a good collection company may be worthwhile if the debt is not very large.

Bruno · Mar 10, 2010

jelliott said:
Dealing with a direct shipper is completely different. The only real method here is to go through normal channels. You can use a collection service to hound them, or you can have an attorney send them a letter threatening a lawsuit. If the debt is not large they may pay it to get rid of you and not have to deal with a potential lawsuit. Sad part is, they will probably just move on and try and burn the next guy. Using a good collection company may be worthwhile if the debt is not very large.

When I did collections in the rent own business before I started driving. I made it to where they wanted to pay me, when you call and call or pay them a visit you will find out they will pay. Just Make sure you do things within the law. This link will help you some.
Fair Debt Collection Practices Act - Wikipedia, the free encyclopedia

Jefferson3000 · Mar 16, 2010

Hey Rockytop,

If you don't mind me asking, "How late were they in paying you?" We never found out if they were just longer in paying, but had paid you nonetheless, or were they stiffing you. You may not get far legally if the only issue is as you said they were "stretching out" their pay period. Such as, 30 day pay became 45-50. Now if we're talking that it's been more than 3 months and no sign of pay, then that's another issue. As I had said before, if you want to throw me a name and city privately, I may be able to help research the MC. Sometimes they are incorporated under a different name than is obvious.