Brokers with NO MC and NO Surety Bond...

  • Thread starter Thread starter Roca
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yeah but once they fine it's maybe like a $500 fine, that's if they can prove it, and then the "brokers" close shop to not pay and re-open, we're trying to go from the other side of the fence and get carriers to refuse the freight coming from these guys!
 
Brokers who don't have proper "USA" authorities

I agree with Pablo... report them.

but


Isn't this site about information and looking out for ourselves from these criminals?

Let's be honest we can't rely on the justice system, Link and the police to immediately halt activity of all these people. You shut one down, another pops up. This site wouldn't be around if the justice system worked they way everyone would like it to.

I think a forum about "Brokers who don't have proper USA authorities and offer up USA freight" is a good start in policing for ourselves.

Carriers should start asking for ICC # and surety bond. You'll be surprised how many so called brokers don't have it.
 
Upforit said:
I agree with Pablo... report them.

but


Isn't this site about information and looking out for ourselves from these criminals?

Let's be honest we can't rely on the justice system, Link and the police to immediately halt activity of all these people. You shut one down, another pops up. This site wouldn't be around if the justice system worked they way everyone would like it to.

I think a forum about "Brokers who don't have proper USA authorities and offer up USA freight" is a good start in policing for ourselves.

Carriers should start asking for ICC # and surety bond. You'll be surprised how many so called brokers don't have it.
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YES YES YES, I like this!!!

NO MC and No Surety Bond or Trust should be a "NO LOAD" or on a "DNU" for all carriers dealing with brokers!!!
 
I am going to pose a two part question then as is this is definately a subject of interest for me. I am a broker and I have tried to get a broker licence in Canada. I was told that i could get one, but it was pointless as it is no longer required as the same with a surety in Canada. I carry a contingent cargo policy, which in essence, only helps me if a carrier messes up a load and I get sued. I have also inquired to several insurance companies, banks, etc about getting a suretybond and have had zero luck.

I do not have any US customers, but a good amount of my freight " touches US soil" whether it be picking up or delivering there.

All of my bills are paid on 30 days and I have never had an issue with a carrier on paying their bill on time. I also have a semi-poor rating on D & B due to the fact that out of several thousands of loads, 1 person reported bad out of 6 in total which reported, although they will not let me know who the negative report was from - so D & B is essentially useless.

So.. my question is... 1 ) does anyone have a name / number of a company I can register a surety bond with and 2 ) please advise me on the info. into getting an MC #. yes.... I realise I can get the MC number info. by searching the web, which i had done several years ago, but I am figuring someone here probably has it in front of them. :)

Some of us brokers....still pay their bills and are trying to follow the rules, but the rules change and getting the info. on this is not always as easy as you think. besides...... i don't want to be on your list...lol !
I'm just trying to make an honest living like most of us !
 
I find this thread humorous. If carriers are so concerned about getting paid by brokers and where the broker industry is widely regarded as "shady"..then why on earth wouldn't a carrier take the 5 seconds to verify that the broker they're doing business with is properly licensed and bonded? Doing so is as easy as going to www.safersys. org Why wouldn't a carrier that is concerned about getting paid NOT do that? It just floors me that people will take the time to bitch and moan ad nauseum about all the shady operators out there...yet..they will not take a few seconds to do the very basics.. how dumb is that?
 
Freight Broker said:
I find this thread humorous. If carriers are so concerned about getting paid by brokers and where the broker industry is widely regarded as "shady"..then why on earth wouldn't a carrier take the 5 seconds to verify that the broker they're doing business with is properly licensed and bonded? Doing so is as easy as going to www.safersys. org Why wouldn't a carrier that is concerned about getting paid NOT do that? It just floors me that people will take the time to bitch and moan ad nauseum about all the shady operators out there...yet..they will not take a few seconds to do the very basics.. how dumb is that?
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we always apply due dilligence, but this is what I'm trying to get across to all the carrier members!

Stop taking freight from non licensed brokers!!!
 
Bond Question

We have our bond with:

The Guarantee Company of North America
4950 Young Street,
Toronto, ONtario
M2N6K1
416-223-9580

We have it through Utter Morris Insurance brokers.

If you get an MC number you also need a process agent. It is a requirement along with the bond.

Google Process agent and you will find one. Basically, they are a US address that receives any legal filings against you.
 
Broker with no MC and no Surety Bond

I guess that I'm in the same mind-set that thefriendlybroker is, inasmuch as being empathetic to carrier concerns, treating everyone I interact with with equanimity, and historically paying carriers within 30 days doesn't buy very much respect these days. As a result of the comments in this thread, I am applying for a US property broker's license and bond. This will take about 4 - 6 weeks. I hope I won't have to suspend operations until then.

That being said, using the analogy of locks not stopping determined thieves, I believe that an MC number and a bond for $10,000. will not deter an unscrupulous actor. We live in times where too many of the business ethics that once underlay commercial dealings have been permitted to be sacrificed on the altar of self-interest, greed and expediency. If parties are to be encouraged to continue to enter into good faith commercial dealings with each other and to maintain their confidence that good faith dealings remain at the heart of any contractual relationship, then they need to know that the people they are dealing with have an ethical benchmark that is equal to their own. All of the proper legal authorities and bonds that are used to "regulate" this industry will do nothing to alter a flawed personality.
 
ActiveT well said I agree with most of your comments. However, full compliance of the regulations also provides regulators the neccessary resources to enforce the rules (although rarely seen). This is all most Carriers and Brokers want is a level playing field where we can all compete fairly allowing the cream of the crop to rise.
 
TRUCKIT said:
ActiveT well said I agree with most of your comments. However, full compliance of the regulations also provides regulators the neccessary resources to enforce the rules (although rarely seen). This is all most Carriers and Brokers want is a level playing field where we can all compete fairly allowing the cream of the crop to rise.
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exactly! if we level the playing field, it isn't the same everywhere if some have lower costs than others because they don't have any dues to pay for their MC or Bond / Trust amongst other things... (Insurance, Higher / Bigger Bond, etc.)
 
I agree with Activet... I too will begin the process to get this stuff... but on a more humorous note.

If I've dealt with lets say 100 carriers for 5 years and always paid the bills on 30 days and they are my references. A carrier makes an informed decision based on what my carriers tell him. somewhat like D & B, but the information is more precise.

or... as everyone on here is saying.... we check that they have a 10,000 surety and a mc # and start doing business. Then that company goes bankrupt owing say $ 250,000.00 Wow... you all get $ 100 out of that and only if there are not secured creditors lined up in front of you.... but of course, in the due diligence of checking on the surety and mc #, you surely must have made the effort to become a secured creditor to guarantee you are one of the first in line to split that 10,000 surety !


serioulsy, the more i think about this, the sillier it sounds. An mc # is good for the purpose of having it and that alone. But to make a financial decision based around it is no more guaranteed than checking the brokers background with OTHER Carriers !...
 
the major point also is once you have your MC and Bond / Trust your cost of operation has gone up, and that's where it should be, but when taking a load from a broker you can always verify if his bond has been touched or with other systems out there you can check how much he owes to carriers, etc.

you guys just need to know what those systems are...
 
As I mentioned in an earlier post, no one thing will guarantee payment within terms, not an MC#, or a surety bond, or anything else. All these things do is reflect the manner in which a broker conducts his business affairs - abiding by the exisiting rules and regulations. As far as Dunn and Bradstreet are concerned, their information would be much more accurate if we all took the time to report both good and bad payers on a regular basis. Doing this would increase their data base and allow them to offer credit information that had much more input, not just the one bad report over a missing invoice or similar incident.
 
D&B is not the systems I'm talking about, D&B isn't worth much...

and you ARE protected, if you take a load and the broker's bond company has claims filed against it then why would you run your truck for this broker?

now if you don't have a bond / trust, the guy can give you 4-5 buddies who he works with they will say he is a great payer, etc, and then you can get screwed like crazy! A bond doesn't lie...and neither do the systems...
 
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Broker with no MC and no Surety Bond

Coming from the carrier side we have to do more checking then what is currently being done. Surety bond, ICC, credit checks, insurance, google earth (office or home), etc., etc., blah blah blah.

Most legit brokers check safer, WSIB, etc, blah, blah, blah...

Carriers need to do the same, be vigilant who you deal with.

MC and bond is there for a reason. As a broker if you can't afford to play by the rules (not many rules out there) and cough up a small amount of change to be legit, what are you doing in this industry? This is one of the few pieces of legislation that is out there. It costs you something like $500 a year to renew your bond with your insurance broker.

Here is the point...

I have collected on 3 US brokers in the past year by calling their surety bond. I will tell you that 2 are no longer operating. The insurance company holding the bond certainly didn't like the claim and cancelled them. Now no ICC, oops !! If everyone checked ICC's of brokers, this would trigger other people to stop hauling for them. The third broker got notified of the claim by the insuance company holding the bond and paid us immediately. To the best of my knowledge are still operating.

The good guys win !!

Other carriers out there I am sure continued to do work with these jokers and were not so lucky.
 
Broker with no MC and no Surety Bond

"Upforit">> Glad to here the system works sometimes. I agree about due diligence and being vigilant about who you use.

The question should be posed to Link Logistics why they allow non licensed brokers to broker USA loads ? Isn't that illegal ?

Do they allow non licensed properly insured carriers to have an account on Link Logistics too?

Now that is a question I would like answered.

:eek:

>>This is an interesting topic, I think there may be a lot of brokers out reading this and soiling themselves right now !!

I bet 50% or higher of all the brokers out there do not have an MC and surety bond.
 
I know for a fact that if you find a broker without proper authority or a carrier without proper authority you call up Carlos at Link and let him know and he will take care of it!

been there done that!

Frtbroker said:
"Upforit">> Glad to here the system works sometimes. I agree about due diligence and being vigilant about who you use.

The question should be posed to Link Logistics why they allow non licensed brokers to broker USA loads ? Isn't that illegal ?

Do they allow non licensed properly insured carriers to have an account on Link Logistics too?

Now that is a question I would like answered.

:eek:

>>This is an interesting topic, I think there may be a lot of brokers out reading this and soiling themselves right now !!

I bet 50% or higher of all the brokers out there do not have an MC and surety bond.
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allfreight said:
I also check phone and fax #'s as our own documents were altered to show our company name but a changed fax and phone. Anyone checking would see our reputation but be dealing with criminals.
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Wouldn,t the cheque be in your name:confused: as it appears on the top of the confirmation;)
 
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