Broker Does Not PAY!!!

[crazyeyes]

Hi, help me out guys. Did move for broker 12/2/10, send invoice out next day, today is 3/18/11 still have not got my money, calling broker everyday, his saying i got no money. What is my next move to do?
I did checked credit report before i did this run, was ok. I'm checked on him now and it's no good no more. $1200 its a lot of money for me, i started my bussiness 9 months ago.

[mgfg]

Does the broker have a bond? If so you should have filed on it 30-45 days after your invoice date!

[GMAN]

If you are a member of OOIDA give them a call. They should be able to help you file on his bond or perhaps offer some other advice. You could file suit against him, but if he is broke it won't do much good.

[Orangetxguy]

Hi, help me out guys. Did move for broker 12/2/10, send invoice out next day, today is 3/18/11 still have not got my money, calling broker everyday, his saying i got no money. What is my next move to do?
I did checked credit report before i did this run, was ok. I'm checked on him now and it's no good no more. $1200 its a lot of money for me, i started my bussiness 9 months ago.

What type of product did you move? What type equipment do you operate?

[rank]

Call the shipper. I *think* they are liable. At least that's what I have been told by other brokers.

Also, you can try typing his MC into the safer database at this link. Licensing & Insurance Carrier Search which will tell you who the bondholder is, but it's probably too late for that. The bond is probably already canceled and authority revoked.

[Orangetxguy]

Call the shipper. I *think* they are liable. At least that's what I have been told by other brokers.

Also, you can try typing his MC into the safer database at this link. Licensing & Insurance Carrier Search which will tell you who the bondholder is, but it's probably too late for that. The bond is probably already canceled and authority revoked.

That was exactly why I wondered what type product he / she moved and what type equipment is used.

Agricultural porducts are "exempt"....food stuffs too.....but if the equipment is flatbed / step / RGN / etc; Then anything except animalfeed they can go directly to the shipper for payment, with the original BOL. If the product was machinery, building material...so on.....and the shipper or consignee, either one, refuse to pay because they already paid the broker, then he / she, can file a lean with the courts on the product.

[chris1]

If it is an exempt product you can't file on the bond.
Collecting from a shipper(reciever) is pretty tough in state courts. You need the right set of circumstances. Money involved in trying to move to federal is far more than the money owed. Attorney fees on freight claims are in federal court are not allowed.

[crazyeyes]

I pull dry van, product was new cardboard boxes.

[crazyeyes]

i'm ooida member, will call them on monday.

[RostyC]

Do it old school.

Get his address
Go to his house
Break his leg.

[moe]

I have had my most success collecting from brokers by threatening to bill and contact the shipper. They don't want their customer (shipper) to know they are not paying the bill. My 2nd most success has been by billing the shipper. Third has been by filing against the bond. I have never collected from the bond but I have run into a couple or brokers who will pay you as soon as you do that. If the broker has closed their doors the bond has usually already been depleted and you have to bill the shipper. By federal law by way of several supreme court decisions even if the shipper has already paid the now defunct broker, the shipper is liable, and is supposed to pay the freight as long as your company name is on the BOL and it is non-exempt. Two things you should always do is to make sure your legal company name is on the bill and you put SLC after signing. I do it in such a way that it(SLC) looks like it's the end of my signature, because I have had some shippers say they do not allow that. SLC goes a long way in the event there is a claim against the load.

[wrongwayTommy]

I have had a few problems with brokers slow to pay
here is what I usually do
i call them and tell them I need my money or i am going to file on their bond and call the shippers and recievers
i call shippers and recieversand request my money,and suggest to them they use brokers that pay their bills
i also ask if they would call the broker and ask them to pay me
so far this has worked
last week 2 of those slow paying guys paid up

and you can always call ooida,they will jump on them for you
if you are a member

[crazyeyes]

I made phone call to broker again, told him i need copy of the check by end of day, if not i'm calling shipper, then receiver and last call will be to fmcsa to report him. I guess this worked, he ask me not to call his customers, got copy of the check couple hours later and just received check today in the mail. I just hope it's not gonna bounce when i deposit it. Thank you all for your help.

[Orangetxguy]

I made phone call to broker again, told him i need copy of the check by end of day, if not i'm calling shipper, then receiver and last call will be to fmcsa to report him. I guess this worked, he ask me not to call his customers, got copy of the check couple hours later and just received check today in the mail. I just hope it's not gonna bounce when i deposit it. Thank you all for your help.

If the check bounces, your only move should be to contact the shipper and explain the situation, and send the shipper copies of all your paperwork, including the bounced check paperwork. You can ask the shipper exactly what the shipper paid the broker. Work with the shipper at getting you paid a reasonable sum, and you just may end up with a direct bill customer.