Ask Mr. Broker
What Do You Do When A Broker Doesn’t Pay?
Last Updated: Oct 17, 2007 - 8:11:50 AM
By David G. Dwinell
Oct 1, 2007 - 8:10:23 AM
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Untrained Brokers come to think of trucking companies as their employees, when in actuality, the positions are reversed. The Broker works for the trucker. I have always known that the Trucking Company butters my bread. The number of my students who report Broker non payment has risen 80% in the last 2 years. Here is what I advise you do as a Motor Carrier.
Give the overdue Broker - 15 days of “grace” beyond the promised pay day, before you send certified mail of your FIRST NOTICE accompanied by a copy of your Invoice to the Broker and Proof Of Delivery. In your letter, make a DEMAND for payment, and give Notice with something like this “Failure to Pay within the next 10 days from the Date of this Demand Letter, will result in NOTICE OF DELINQUENCY being forwarded to the following Regulatory and Collection Agencies: 1. Our Collection Agent, 2. FMCSA (www.fmcsa.dot.gov) and Safestat, 3. Your FMCSA registered Surety Bond Company”. Fax a copy to the broker on the same day you mail, then call the Broker and discuss your Demand for Payment.
If no response, in another 10 days send your SECOND NOTICE to the Broker via certified mail. Here are some suggested language for your second letter;
“ This Notice is your last NOTICE OF DELINQUENCY and we have not received satisfaction of your PAST DUE invoice # ____________________ . All Agencies listed in our First Demand NOTIFICATION letter will be notified by registered mail Seven ( 7) days from this Notice Date______________________, unless we received a Certified check from your company for the balance including accrued interest. In the amount of $_______________________________”
This is the Action I would take against a Broker who fails to pay.
Our Next installment is “SL&C - a valid Motor Carrier defense on a Bill of Lading.”
David G Dwinell is a Master Broker, teacher and a nationally recognized “expert” in transportation brokering. E mail askmrbroker@loadtraining.com with your questions.