carrier plus broker o separate authority?

It doesn't make any difference how big the bond, there will still see some who slip through the cracks. It really bothers me that the big brokers and those with a vested interest in making a lot of money from this legislation (ie- TIA) are the ones who are pushing this legislation. You should do some reading about how TIA members can get taken to the cleaners with the upfront fee they charge for the coverage.

It seems to me that when you are in business, you need to be willing to do what is necessary to protect your interests. That means checking brokers out before doing business with them. This legislation will only protect some carriers who don't know how to run their businesses. They will take a load from anyone who offers it and not think twice about checking them out. There are thousands of other businesses that handle money and the government doesn't require a bond to secure payment. The way this legislation was originally proposed, the bond could be raised at any time without having to go through the legislative process. That means that there will likely be less competition and fewer brokers and that will most likely mean lower rates for carriers. It is a shame that so many smaller broker will be driven out of business due to this bill.

You cannot be in business without having risk. With great opportunity comes great risk. You don't need a broker bond to eliminate the risk. Owning a risk free business will NEVER happen. You can reduce the risk, but will never totally eliminate it. This is nothing but an attempt to place the responsibility on the wrong people. It is up to the carrier to reduce his risk by only doing business with those who have good credit or the resources to pay him. A broker could exceed that $75,000 bond very quickly. There comes a time when the cost of doing business is no longer worth the effort. The extra costs of brokers to have the higher bond will be passed along to carriers with lower offerings. If the economy stays flat or staggers along in the coming year, it will not bode well for brokers or carriers.

 

Excellent post sir!

 

yes exactly why not thats what they did to carriers i got screwed from Eleets Transpotation rumor has it they started up a new broker firm while owing tons of drivers i am just 1 driver they owe me $3800 they only had a 10k bond so i agree with the increase 10k just isnt enough to pay out

 

Nor is $75k. No amount will be enough when companies book millions in business each month. Put the criminals behind bars and ban them from ever being able to obtain a broker authority again. That's the only thing that will solve it.

 

Just an FYI. Our bond is currently $250k according to ITS.

 

I totally agree but we both know that will never happen the more money a company has the more laws they are allowed to break look at politicians most of them should be behind bars too in fact I bet the bigger brokers that already have at least a 75k bond paid a lobby group to push for that to knock out there competitors