{"id":5289,"date":"2013-03-12T04:33:52","date_gmt":"2013-03-12T04:33:52","guid":{"rendered":"http:\/\/findfreightloads.com\/blog\/?p=5289"},"modified":"2013-09-26T21:27:44","modified_gmt":"2013-09-26T21:27:44","slug":"file-against-a-broker%e2%80%99s-bond","status":"publish","type":"post","link":"https:\/\/findfreightloads.com\/blog\/file-against-a-broker%e2%80%99s-bond\/","title":{"rendered":"File against a broker\u2019s bond"},"content":{"rendered":"<p>Federal rules pertaining to broker surety filings are in flux following congressional action last year that raised the minimum bond from $10,000 to $75,000. Still, basic procedures for filing are expected to remain.<\/p>\n<p>The most high-profile filing incidents involve brokerages in trouble. If a broker is late on payment, odds are you\u2019re not the only party who\u2019s thinking about filing. If the broker closes and the broker\u2019s bond limit doesn\u2019t cover all debts, claims are paid on a \u201cpro rata\u201d basis \u2013 a percentage of what each carrier is owed.<\/p>\n<p>In cases of broker business failure, getting your claim in early may not be particularly helpful. Federal Services Corp., which handles claims against financial institutions authorized as trust providers for brokers by the Federal Motor Carrier Safety Administration, notes it doesn\u2019t file claims on a \u201cfirst come, first served\u201d basis. Rather, \u201cwhile this practice may be followed by some of our competitors,\u201d the company says, \u201cit just encourages premature claim filings \u2013 sometimes even before loads are delivered!\u201d <\/p>\n<p>FSC notes that in 95 percent of claims it receives, \u201cthe broker pays the claimant after being informed a claim has been filed against their trust.\u201d This avoids what it describes as a time-consuming process of mailing out documents for the carrier to complete and return, detailed below.<\/p>\n<p><strong>How to file<\/strong><br \/>\nDetermine when it\u2019s time to file. After a broker has not paid within a reasonable or contracted time, you can file. Contracts often state 30, 60 or 90 days after delivery.<br \/>\nFind the broker\u2019s surety provider.<\/p>\n<p>\u2022\tVisit <a href=\"http:\/\/www.fmcsa.dot.gov\/\">li-public.fmcsa.dot.gov<\/a>, FMCSA\u2019s public licensing and insurance information site. Click through the disclaimer page and choose \u201cCarrier Search\u201d from the pull-down menu at top right.<\/p>\n<p>\u2022\tSupply as much information about the broker as you can by using the fields for DOT number, legal name, DBA name, base state and docket filing number. Brokers typically will have an \u201cMC\u201d prefix. \u201cFF\u201d refers to freight forwarders, which last year\u2019s MAP-21 legislation for the first time also put under the requirement for a bond. Click search. (If you didn\u2019t already know the broker\u2019s MC number, save it for future reference.)<\/p>\n<p>\u2022\tWhen the broker you\u2019re filing against comes up, click the \u201cHTML\u201d button to view licensing information on the web page or \u201cReport\u201d to download a pdf. On the pdf, the surety provider is listed under \u201cActive\/Pending Insurance\u201d near the bottom. If you\u2019re viewing the HTML report, click the \u201cActive\/Pending Insurance\u201d hyperlink for the surety provider\u2019s information.<\/p>\n<p>Have this information ready to file: Broker\u2019s legal name and MC number, as well as your own and relevant contact information; amount owed to you; load date (or oldest load date if more than one); commodity hauled.<br \/>\nContact the surety provider.<\/p>\n<p>\u2022\tYou may need to do further searching to find phone or website information for the provider. Several pulls of broker licensing reports showed neither phone or online points of contact for the listed surety provider. A simple Google search for company name and location, in most cases, will bring up the provider\u2019s website and contact phone numbers.<\/p>\n<p>\u2022\tWhen you make contact, follow the provider\u2019s claims process. Some companies, such as the Pacific Financial Association, will send you to a web page to fill out a preliminary form. Most sureties, however, will handle this step via a telephone call to their office. From there, documents will be mailed to you to fill out and return.<\/p>\n<p>\u2022\tIf luck\u2019s on your side, you\u2019ll get paid by the <a href=\"http:\/\/freightbrokerscourse.com\/\">broker <\/a>after notification of the claim from the provider. If not, follow the provider\u2019s claims process to the end and hope the bond or trust isn\u2019t exhausted by similar claims if the broker\u2019s business is failing. If some broker groups\u2019 efforts to derail the new $75,000 minimum bond requirement are unsuccessful, at the least you\u2019ll have a better chance of getting more money in such cases fairly soon. MAP-21 directed FMCSA to establish the new requirements of brokers, freight forwarders and surety providers by Oct. 1.<\/p>\n<p><a href=\"http:\/\/www.jwsuretybonds.com\/surety-bonds\/commercial-bonds\/freight_broker_bond.htm?utm_source=rightnowloads.com&#038;utm_medium=Banner&#038;utm_campaign=$75K+Freight+Broker+Bond\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-4920\" alt=\"728x90\" src=\"http:\/\/freightbrokerscourse.com\/wp-content\/uploads\/2013\/09\/728x90.jpg\" width=\"728\" height=\"90\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal rules pertaining to broker surety filings are in flux following congressional action last year that raised the minimum bond from $10,000 to $75,000. Still, basic procedures for filing are expected to remain. The most high-profile filing incidents involve brokerages in trouble. If a broker is late on payment, odds are you\u2019re not the only [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3377,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts\/5289"}],"collection":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/comments?post=5289"}],"version-history":[{"count":7,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts\/5289\/revisions"}],"predecessor-version":[{"id":5476,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/posts\/5289\/revisions\/5476"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/media\/3377"}],"wp:attachment":[{"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/media?parent=5289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/categories?post=5289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/findfreightloads.com\/blog\/wp-json\/wp\/v2\/tags?post=5289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}