Payment issue

Discussion in 'Freight Broker Forum' started by justatrucker, Mar 20, 2013.

  1. justatrucker

    justatrucker Bobtail Member

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    So, I found a load with a broker that I had been working before... not too much though. The driver picked-up on Friday and delivered on Monday as we agreed with the Broker. Monday evening I got back the BOL, issued the invoice and e-mailed all the paperwork (it was after their office hours so I considered the paperwork as sent on Tuesday). I did choose "one day quick pay" and wrote that on the bill since there is no agreement signed with them. I made the choice according to their website statements under Carriers/Quick pay that looks like this:

    "Quick Pay

    • Standard Option (no fee)
      Check will be issued within 25 days of SL receiving the paperwork
    • 7 Day (3%)
      A 3% discount will be deducted from the gross truck rate. A check will be cut within 7 days of SL receiving the paperwork.
    • Next Day (5%)
      A 5% discount will be deducted from the gross truck rate. The day after SL receives the paperwork a check will be issued."


    Yesterday, I called their Account Payable department to check if they received the documents and to get a confirmation of the check being issued today. Well, I was told that the quick pay takes actually 48 hours and that my check will be issued on Thursday and sent through Fedex (I have to pay for it) on Friday. So, I will get the check on Monday = after seven days but I will get charged for one day quick pay.

    Is this false advertising? Is this legal? How should I proceed?

    Thank you!

     
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  3. Sly Fox

    Sly Fox Road Train Member

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    Definitely false advertising. However, I always verify that before agreeing.

    I had one say 'next day quick pay', but it's 'the check will be cut the day after we receive and process paperwork, and then the day after the check is cut we will put it in the mail'. Needless to say, I don't do business with them any longer. And the rate wasn't that spectacular to begin with.
     
  4. justatrucker

    justatrucker Bobtail Member

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    We will definitely stop working with them. In the mean time I called my accountant and he said that what they did is "false representation" and, of course, it is illegal. Then I called them, complained about their procedures and I got to talk to the manager of their accounting department. She said that they would issue the check today and send it through Fedex.

    I felt like they know exactly what they are doing it just depends if the carrier realizes what is going on or not.

    Sad :(
     
  5. windsmith

    windsmith Road Train Member

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    Broker name, and company information please? We need to know this information so that we can all avoid dealing with them.

    I've heard of treble damages being awarded in court cases where 'unfair and deceptive trade practices' such as this have been employed. Not sure what damages would be awarded in this case, though.
     
  6. aiwiron

    aiwiron Road Train Member

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    Sunny Tampa Florida
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    Broker from C.H. Robinson perhaps?
     
  7. justatrucker

    justatrucker Bobtail Member

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    I was tempted to leave their name here. I will re post their name after I will get our money.

    We had very good experiences with CH Robinson... low quick pay discount, they had always payed on time. We had an issue with one of their brokers and was solved right away.... My only regret is that lately I couldn't find more CHR loads.
     
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  8. EverLuc

    EverLuc Light Load Member

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    Feb 18, 2013
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    These things happen. If I read correctlyn 5% for quick pay is a bit to give up. Add that to the "10% that is shoveled off of the top and it a bit of a sour tasting deal. Yet, I do understand that sometimes the load gets one home or into a better area. That's the way it goes. Perhaps ask if they ccan wave orr even reduce the fee in order to keep a little more for your family.
     
  9. Marlin46

    Marlin46 Medium Load Member

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    Atlanta, GA
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    While I am glad it appears it will work out for you in this situation I would recommend a little planning for the future. For the next 6 months or 12 months set a little aside and improve your business cash flow. If there is one business where cash flow is important it would be trucking. Just a quick example here - if you give up an average of 3% for Quickpay / Factoring on $175,000 for the year you just gave the brokers an extra $5,250. At 5% it would be $8,750. After a year or so in business hopefully you get the business plan firing on all cylinders so that you do not have to use Quickpay. Just my .02 and I know it is easier said then done.
     
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  10. EverLuc

    EverLuc Light Load Member

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    Marlin46 is correct. 85% of the "alleged" gross rate is a lease type rate. Back then as I getting ready to buy my first(old) rig, I must have asked over a hundred O/Os for advice. I would say 90% would quickly say, " Son, you best have atleast 3 months worth of running $ if you wanna go wildcatting." This piece of advice has pulled us over many a hump ranging from fuel spikes to medical needs.
     
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  11. jbatmick

    jbatmick Road Train Member

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    hastings, Fl
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    Guess that would be like taking a load from them, promising 'overnight ' delivery, and using their time line to actually deliver in about 5 days.
     
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