Charging "broker" fees w/o a broker authority

Discussion in 'Ask An Owner Operator' started by TRUCKSMITH, Feb 7, 2008.

  1. TRUCKSMITH

    TRUCKSMITH Bobtail Member

    7
    0
    Feb 6, 2008
    Jackson, MS
    0
    Recently my husband heard about a carrier who was offering loads to drivers and charging them a brokerage fee for the loads (the percentage was different if you had your own authority). When I checked their authority under FMCSA it stated that they only had a contract authority, not a broker authority. My question is are they allowed to charge a brokerage fee if they don't have a broker's license? Or are they able to do this because it's their "own" accounts that they use their for-hire drivers on.

    By "their own accounts" I mean that they are in a contract with the shipper....but then again, that's what brokers do right? They get accounts and then offer the loads to o/o's and other carriers....Is there something I'm missing here? I thought I had averted being scammed by this company, but in looking up another company whose been around for 24 years (that also uses o/o's under their authority and sends them out on loads) they don't have a broker authority either, just a common and contract carrier authority....Shouldn't they only be allowed to offer company drivers loads and not o/o's?

    Thanks in advance!
     
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