Actually, there is a lot that Baron Finance could do. First and foremost, it is the factoring company's responsibility to check the invoice and the supporting documentation to make sure that the load was not double brokered. If there is a suspicion (or a direct admission by the carrier that he brokered the load to another carrier), then the client of Baron Finance has to present original PODs showing the other carrier's credentials, and the factoring company will pay the actual carrier. The difference is what the client of the factoring company is entitled to if he indeed brokered the load. If this is not done, the actual carrier has the right to go after the shipper/consignee and have the factoring company sued too as the third party. Baron Finance could contact their client and tell him that they would immediately halt the factoring, would possibly use any reserve amounts outstanding as a payment to the actual carrier and also would consider their client in default with all the legal consequenses of such an action.
