Escrow

Remo · Aug 25, 2015

Hello all,

Is escrow a common part in a carrier/owner-operator lease agreement? If so, what would you say the average escrow withholding is? I am looking at a $1,500 escrow with a carrier that would be deduced at a flat rate, weekly, from my settlements until the full escrow amount of $1,500 is reached. This would be for a straight truck lease agreement. This is the first time a carrier has mentioned anything about an escrow to me.

xiggi · Aug 25, 2015

Escrow ia very common, I've never paid more than 500. But I'm in a van.

Treadmill · Aug 25, 2015

Remo said:
Hello all,

Is escrow a common part in a carrier/owner-operator lease agreement? If so, what would you say the average escrow withholding is? I am looking at a $1,500 escrow with a carrier that would be deduced at a flat rate, weekly, from my settlements until the full escrow amount of $1,500 is reached. This would be for a straight truck lease agreement. This is the first time a carrier has mentioned anything about an escrow to me.

That is about the going rate for escrow on a straight truck.

Greg · Aug 25, 2015

$1000-1500 escrow is very common. There should also be a clause in the contract regarding interest , paid or not, on Your escrow money. And also what Your escrow money can be spent on.

Turtle · Aug 26, 2015

There's a couple of sections on escrow here. It's a good read.

Opel2010 · Aug 26, 2015

Roamin said:
$1000-1500 escrow is very common. There should also be a clause in the contract regarding interest , paid or not, on Your escrow money. And also what Your escrow money can be spent on.

Some carriers don't call it escrow, just to make sure they don't pay that interest...

Opel2010 · Aug 26, 2015

Remo said:
Hello all,

Is escrow a common part in a carrier/owner-operator lease agreement? If so, what would you say the average escrow withholding is? I am looking at a $1,500 escrow with a carrier that would be deduced at a flat rate, weekly, from my settlements until the full escrow amount of $1,500 is reached. This would be for a straight truck lease agreement. This is the first time a carrier has mentioned anything about an escrow to me.

Large carriers do ask for escrow, if you're signing for a tiny carrier, do a little google search about reviews regarding that carrier...

Remo · Aug 27, 2015

Thank you for all of the feedback. You'd think after talking with a few carriers someone would have mentioned it more than once. I looked a little puzzled when the guy threw the $1,500 escrow at me...