Bearing Down on Bad Brokers

New legislation pending in Congress is aimed at cracking down on crooked brokers. Authored by U.S. Rep. Frank Guinta (R-NH) and Rep. Russ Carnaham (D-Mo.), the so-called “Fighting Fraud in Transportation Act” has won the support of the Owner-Operator Independent Drivers Association, the American Trucking Associations and the Transportation Intermediaries Association.

“This law would put a stop to a system that allows ruthless brokers and scam artists to continue to operate unchecked,” said OOIDA executive vice president Todd Spencer. “Too often, we’ve seen deceitful brokers get away with collecting payments from shippers but cheating truckers out of what is rightfully theirs.”

The measure would require brokers and freight forwarders to:

·       Raise the broker surety bond requirement to $100,000;

·       Increase transparency requirements;

·       Establish penalties for violations of broker regulations, including unlimited liability for freight charges if conducting brokerage activities without a license or bond;

·       Set guidelines for companies that provide brokers with surety bonds.

We’ll keep you advised on how the bill advances. It will be interesting to see.