Ecsrow Account?

Online completing my new hire pack from the company i am switching to next week. one of the forms is a driver acknowledgement form. It states that the company will withhold $10 a week for a driver escrow account until a maximum of $500 is reached. Has anyone ever heard of such a thing? if so what the heck is it for?

 

Money held on your behalf by a 3rd party.

Are you a company driver? If so why are they setting up an escrow? Find out before you sign anything.

 

Sounds like a bs policy to me ...

 

Probably a if you really mess up account, where you pay the deductible, or if you trash the trk or leave it in a corn field instead taking it back to their yard when you quit

 

I've recently heard of this from SOME companies. I believe that escrow account is meant to pay for truck repairs they determine are caused by poor student/newbie driving behavior. It's meant to replace mirrors, fenders, etc the new driver damages not replace your water pump, new brake shoes, etc.

 

What would happen if you quit? Will you get the money back or lose it?

Escrow generally refers to money held by a third-party on behalf of transacting parties.

 

Yep. And no third party about it. Further more, it may or may not earn interest. Lots of companies do this. Accept it and move on or don't and try and find a good outfit that doesn't do this. But don't get upset if you never see your final paycheck [absent an escrow policy] and you leave a mess behind as you leave.

You can thank POS disgruntled drivers that came and went before you for these policies.

 

Thus, It could also be in an interest bearing account, which pays the account holder a percentage of the balance in the account. $500 x the number of drivers...that could add up to real nice earnings on deposits.

Which suggests the company is profiting from your weekly withholding. You could work there for years and never see a dime of the interest in return.

Kinda sneaky!

 

Taking a contractor or employee's money and depositing it in a personal or business account and calling it "escrow" is a shady business practice that a company driver or 1099 contractor should never accept.

A legitimate escrow entails a 3rd party who holds the money and does not allow either party access to it without clear terms for either forfeiture or return of the deposit. When a hiring company takes the money and deposits it in their own account- they alone have full control over whether it gets returned or not. That is not "escrow".

Offer to put the money in an account through an actual escrow service. There are online services that charge a flat fee like $25 for $500. Even offer to pay the fee yourself. Agree on and submit the terms to the escrow company. If the company does not want to do this, then they have no intention of returning the money.