How easy is it for a Broker to steal your money?

I ran under a one broker operation years ago.We had 10 drivers and we were doing the rail yards in just NY.He left a sign on the door Monday Morning and turned his phone off and went into hiding.All the 10 drivers lost all what was owed to us.Some guys got clobbered,losing 4-5K.I lost $2,200 and never seen the guy again.He filed for Bankruptcy..

Then 3 months down the line we heard Jeff of first choice went back to his ''old'' job where he was a ''broker'' for a company and wanted Unemployment from them...He won.!!!!!...Only in America.

So Jeff screwed all his drivers,left town and then won,collecting Unemployment from last job.....We as drivers are in the wrong side of the business,if you no what i mean..

 

I always ask for COD ..they say no , I never get burned..

 

It doesn't happen often however the potential is there....if a broker stiffs you keep in mind that you can always ask the shipper to pay for the services. At the end of the day they are required and obligated to pay for it even if they are already paid the broker. Perhaps hire a debt collector on a contingency arrangement or do it yourself. It does involve jumping through some hoops however it can be done.

Many times the shipper doesnt know a truck from 6 months ago didnt get paid so keep that in mind and be a professional in your dealings. Explain the situation in writing w/ the BOL / POD, Invoice, and Rate Con and in my limited experience ( a couple of loads in a few years ) the shippers made good on it.

 

in any business in the world, there is always the potential of clients not paying their bills

if you can get COD on all stuff, thats great, but it is not the norm

which is why everyone deals with a certain level of trust, whether its thru background checks, word of mouth, or even gut feeling

if you go to your bank to borrow $5, they will verify certain things, why dont we do it as business operators

and even after all of that, the guy can still walk away

 

this is where credit checks and factoring come into play. isnt it?

 

This is where business comes into play. If you are an owner operator that means you are the owner of a business. Bad Debt Writeoff is a fact of life in any business, and if you have customers or brokers that aren't credit worthy then you have a problem. Having only one broker or only one customer is asking for trouble, no matter how great the business is right now, if they fail or leave you for any reason then you don't have a business anymore.

Credit checks and using factors would be necessary steps to controlling the risk. Having multiple customers or brokers also controls the risk in case any one of them are lost. In the event a customer or broker doesn't pay, then getting a lawyer and/or collection agency involved is the next step.

 

I hauled a load for a "PTC 1st Choice" one time. My guy was Joel from Omaha.

 

Collect On Delivery