Escrow: From an Owner Operator: Is this BS

Discussion in 'Ask An Owner Operator' started by ksray, Nov 7, 2018.

  1. ksray

    ksray Bobtail Member

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    it is agreed that an escrow fund is set up at the time of the execution of the Agreement. to withhold the following:

    $250 from the first statement followed by

    $250 per week to the maximum of $2500

    If for any reason, XXXXXX does not withhold dollars in a given week,

    authorizes xxxxxxxxx to withhold (in subsequent weeks) any additional funds necessary to

    make up for such deficiency. If Kxxxxxxxxy does not keep his Equipment operating for the

    full term of the Agreement, the minimum fee paid to any regulating agency to certify such

    equipment, or drivers, may be deducted from sums held in escrow. All escrow funds may be held

    after the period of 45 days after termination of this Agreement, to insure payment of Kxxxxxxxxxxy
    obligations, including cargo claims and liability claims advances, equipment rental costs, fuel

    card advances or any other costs which are the sole responsibility of the xxxxxxxxxxn. Should

    any claim not be resolved at the end of said 45 days, the xxxxxxxxxxx may retain the escrow

    funds until claim is closed and Fuel Tax Return has been filed. If xxxxxxxx retains any

    escrow funds beyond 45 days, the -x-x-xx-x-x-x- shall release any remaining funds after the fuel

    tax return has been filed within thirty (30) days of the closing of the remaining claims. The xxxxxxx shall provide xxxxxxxx with an accounting of any transaction involving the

    escrow account upon request of the xxxxxxxxxx.
     
  2. ZVar

    ZVar Road Train Member

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    Are you an employee, looking to work for an O/O, or are you an O/O looking to lease with a company?
     
  3. ksray

    ksray Bobtail Member

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    I am an employee, and he said he was leasing the truck.
     
  4. not4hire

    not4hire Road Train Member

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  5. ZVar

    ZVar Road Train Member

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    Then yes, it's a scam. It's not your job to pay his business expenses.
    Plus, it's very unlikely it's an actual escrow. More than likely it's a loan you are giving the company. An escrow is when something (money) is held by a third party to be released to either party on set conditions only. The fact he has 100% control of the money makes it not an escrow.

    No, you need to avoid people like this. Let me guess, he wants to pay on a 1099 also?
    Again, 1099 is not a legal way to pay an employee, so if he starts off lying and running illegal, what makes you think he won't treat you the exact same way.
    And even if he is legal on a w-2, a fake escrow is almost as bad.
     
  6. ksray

    ksray Bobtail Member

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