Facts On How To File A Claim Against A Freight Broker Business
If FBC feels there is evidence of wrongdoing, we will offer our freight broker complaint services to you. Please read over the Fact Questions and also visit our Procedure Page for additional information.
Where do I file a complaint against a freight broker ?
You can file a complaint against a freight broker company here with us here. We will take the time to view the complaint and then offer knowledgeable solutions on how to handle your complaint. Please follow the link to our Procedure Page and learn about how this process works with FBC
Can I file a claim against a freight dispatcher ?
Yes you can. If you have been misinformed or felt misrepresented by a so called "Dispatcher" , then you can file a complaint with us and we will verify the individuals position within logistics.
What steps should I take to verify a freight broker ?
You should visit the FMCSA Company Snapshot website and check if they are active. You can find the link here : https://safer.fmcsa.dot.gov/CompanySnapshot.aspx. You should also check with your factoring company and make sure they are credit worthy and have not had issues in the past for non payment. DAT load board and ITS Load board both will give reviews about the freight broker company for further verification.
How do I verify a freight broker’s surety bond ?
You can request for the freight broker to send you a copy of their Surety Bond Certificate. On this Certificate you will have the contact number of the underwriter of that surety bond. You can always call the Surety Bond company and verify the status as well of any past complaints. Usually the Surety Bond Certificate is included in the freight brokers set up packet when you signed your Broker/Carrier agreement. Another way to verify a freight brokers surety bond in thru the FMCSA Company Snapshot. The FMCSA will list the Surety Bond Underwriters information for you to have access to contact information.
How do I file a claim against a freight broker’s surety bond ?
You file a claim against a freight brokers surety bond for non payment of a load delivered. This is done by you having verifiable proof of the transaction, a signed rate confirmation with the freight broker and t has been more than 30 days since payment has been received. The Surety Bond company will walk you thru the steps of how each company might have different procedures.
Should I expect to receive payment after filing with the FMCSA ?
No, The FMCSA will not get involved with Payments. However if the freight broker has broken federal laws in dealings with you , the FMCSA might take legal actions against the freight broker business.
What happens if the freight broker does not pay the factoring company ?
If you factored a load that you received from a freight broker and they do not pay the invoice back to your factoring company, the factoring company could pursue recourse against your trucking company. You would need to check your contract with your factoring company pertaining to recourse and non recourse agreements. If this happens you would need to file a claim against the freight brokers surety bond.
Can I attempt to collect payment from the freight broker’s customer ?
No. You have a signed rate confirmation agreement that is binding and your payment would be owed from the freight broker company.
Should I always get a broker agreement and will this help prevent non-payment ?
Yes. Having a Broker Carrier agreement is critical and do not move freight for any broker with out it. Also the most important document to secure your payment would be the Rate Confirmation Agreement. This is the document that is binding and shows services were rendered by your trucking company and payment is owed by the freight broker firm to your trucking business.
Is there a point where I would need to sue a the freight broker ?
This is a question that only your trucking company can decide. If you have lost a large amount of income due to working with a bad freight broker then filing a civil case against the freight broker might be your only options. You would need to do your due diligence and see if the cost of filing a civil lawsuit against a freight broker is worth the loss you already have incurred. We suggest consulting with a transportation Attorney on these type questions.
What is the first step I should do if I do not receive prompt payment ?
You should send out a certified letter with you asking for your payment along with a copy of the rate confirmation if it has been more than 30 days. You also must look at the terms and conditions on the rate confirmation that you received from the freight broker to determine what is considered the due date of payment to be honored. Remember you signed the rate confirmation agreement and agreed to its terms by signing.
Where should I report a freight broker if I feel my Trucking Company has been wronged ?
You can start by reporting your complaint case against a freight broker business with us. We will help guide you thru the process.
How long should I try to collect from the freight broker before I file a claim against their Surety Bond ?
If you have not received payment within 45 days, I would suggest you contact their surety bond company and see if preexisting claims have been made. If you find that claims have been filed against your freight broker, then we would suggest you file a claim immediately as this could be a dangerous sign of no payment. Surety bond claims are done in order of the time the claim was made. This means others could be in front of you to get paid and the amount paid is only the amount of the bond. If there are a numerous amount of claims, the surety bond amount could be used up quickly and if you are late on your filing of your claim, you could possibly not receive compensation.
Would it be a better course of action to sell my unpaid invoice to a collection agency ?
If you are not interested in filing a civil lawsuit for retribution of non payment, then selling your unpaid invoice to a debt collection agency would be a good start of "Attempting" to collect. Most debt collection agencies will usually charge 30% of the gross collection amount they receive.
If I don’t have all my paperwork, can I still file a complaint claim with you ?
Yes you can file a complaint with us and we will do our best to investigate the situation. If you do not have proper paperwork showing how your trucking company lost money, the odds of your business collecting any lost money would be affected. It is best for you to always keep documents, emails, rate confirmations, screen shots and even text concerning any load that you might feel uncomfortable with.
Do factoring companies have a list of “do not fund” freight brokers and will they tell me if I am working with one ?
Yes. All factoring companies keep a list on non paying freight brokers and you should always get a credit approval on any load you decide to move. Most factoring companies will have a log in portal where you can input the MC# of the freight broker and see if they are approved for funding. If you do not find the information then you should call your factoring representative and ask for a hard credit check on the freight broker company before deciding to move the load with them.