DK Transport
- Thread starter Henry
- Start date
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Henry there are a couple other threads on these clowns. It looks like they where a scam from what I have read.
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The first time I called them, they told me to call Frank to another phone number. Frank told me the cheque was in the mail (August 31st 2017). Since then we received no payment, no call back, no reply to our emails and even Frank said that they weren't answering the phone anymore...
My friend received a letter today from Riviera Finance saying they were foreclosing and everyone who owes DK Trans money has to pay Riviera Finance The persons name is Gregory Kmiecik. How can this company get away with holding carrier payments? My friend isn't going to pay Riviera Finance as he doesn't believe DK Trans actually delivered the shipment....
Does the factoring business have right or the carrier who delivered the freight?
Does the factoring business have right or the carrier who delivered the freight?
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We hired DK Transport for a load based on Quick Pay recently (mid September) but due to an issue with damage to two of the crates held payment until we knew what repair was... Also today found out that a good local carrier was hired by them in QC had not been payed on our load. Long story short. Cancelled payment to them and will be paying the Quebec Transport Company directly. Thanks to Inside Transport and all your posts for keeping this site going and helping us stay honest to the guys doing the real work on our behalf.
The carrier sold its interest in the load to the factoring company, so carrier no longer has any claim. If you signed a notice of assignment, you probably agreed to pay factor until they notify you to do otherwise.
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Interesting twist to the DK issue and "I'm sure it's just a coincidence" but now shortly after we refused to pay the factoring company in order to pay the carrier that DK sold the load to, we've been blacklisted by a couple of these same factoring companies. One of them even told us that we pay well but it comes from higher up.
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I'd be interested to know which factor this was.
I had an identical situation and had an opposite reaction from the factor. I submitted the factor their invoice, my original load confirmation and also my term and condition #1 that indicates if my load is rebrokered I will pay the transporting carrier, not the company that rebrokered the load. They cut a cheque same day to refund the funds we had already paid them. Stand up company when presented with all the facts - Royal Financial in case anyone is interested.
Open up a larger conversation with them and see what happens.
Keep well,
Mike
I had an identical situation and had an opposite reaction from the factor. I submitted the factor their invoice, my original load confirmation and also my term and condition #1 that indicates if my load is rebrokered I will pay the transporting carrier, not the company that rebrokered the load. They cut a cheque same day to refund the funds we had already paid them. Stand up company when presented with all the facts - Royal Financial in case anyone is interested.
Open up a larger conversation with them and see what happens.
Keep well,
Mike
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Regardless if you pay the original carrier (the one you gave the load to) or their factoring company, if the carrier who actually performed the work doesn't get paid, both you as the broker and/or your customer could be on the hook to pay again. In other words, you pay the factor for the carrier you originally gave the load to. That carrier had rebrokered the load to someone neither you or the factor have ever heard of. Original carrier neglects or refuses to pay the carrier who did the job and then guess who he goes after for his rightful compensation? That's right....your customer, or whomever is listed on the B/L as responsible for the freight charges. This is not a knock against factoring companies, the do serve a legitimate need. My point is to encourage people to ensure that the monies you pay out for any of your loads, is ultimately received by the party that actually performed the work.
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DK asked specifically for quick pay and their invoice made no mention of remittance to a factoring company. Payment would have gone to DK directly if not for the damage upon arrival at consignee. Riviera did not contact me for payment until well after DK had disappeared and I advised we had already made payment to the actual carrier under our shipment as well as the cross dock and city carrier they had sold our freight to at destination. We also had to cover damage to the product caused by DK as per BoL tracking. Small loss to us when the dust settled, but much less than if we had paid DK and the actual carrier. In fairness, I did receive a call today from the factoring company that black-listed us from giving a load to one of their clients now advising we had been taken off their company blacklist. They would not however, advise who the higher up was that told them to blacklist us in the first place, and have asked to have them contact me to get this straightened out. I do respect the service a factoring company does on behalf of carriers as we have all had customers evaporate on us, but to penalize us because they failed to do their due diligence and we did do ours is unfair.
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Perhaps someone made a decision without all the facts (placing you on a no buy), but then when all the facts came to light they realized the decision needed adjustment.
Happens frequently enough.
Sounds like the worst is behind you on this one, that's the good news!
Keep well,
Mike
Happens frequently enough.
Sounds like the worst is behind you on this one, that's the good news!
Keep well,
Mike
I find it interesting that a factoring company can "apply" incorrect information to a business' account with nothing more than an employee of the factoring company's "say so". Wondering what the legal ramifications are since if they "list" you as a slow payer/non payer etc if could effect the company's credit, when, if fact, said company is well within their legal right to do their due diligence to make sure the actual carrier is getting paid.
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I hope so Mike and again all, keep up the good postings, this could have gotten ugly had I not checked in here.
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Credit reporting agencies unfortunately, use information provided primarily by your vendors. Sometimes all it takes is one missed or disputed invoice and the reporting agency lists you as a "slow payer", especially if the total volume of their information on you is small. To help balance their information, it is a good practice to provide them with your payables (including contact names and numbers) so they have verifyable information of your payment history. As appealing as "legal action" might seem, I believe it would be a long and difficult process. Keep in mind, they do not make up or fabricate information, they just employ information that could be out dated, factually incorrect or otherwise flawed.
Great point, Loaders. Credit reporting agencies base their info on the reports they receive from companies and banks that extend credit to their customers. The agencies know the info may not be perfect, so they will gladly correct any inaccuracy if adequate proof can be provided. If a dispute arises (eg. a damaged shipment), this should not be considered a credit issue and would therefore have no negative impact on a debtor's credit report.
The issue I see often is incomplete, inaccurate or wrongly placed BoL info. The parties rarely identify themselves next to their signatures, so it's impossible for a factor or anyone else to know who has signed. Blind shipments make things even more complicated. The BoL protects the carriers rights, but they are useless unless drivers take the time to ensure they are properly completed.
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Could there be an argument however that the receivables should not have been sold due to the fact that their client did not actually haul the load and that by buying them they also are responsible for the bad debt?
I think it would be possible to successfully argue that position in court (full disclosure, I'm not a lawyer and this should not be taken as anything more than a educated opinion) provided you have all supporting documents. I think the local carrier must produce a carrier confirmation proving that DK sold the load to them and is therefore is not entitled to full payment by the debtor, Ronfs1, unless local carrier has been paid. I think this would work even if the shipment is blind, but have no direct experience.
Can anyone else chime in on this?
Can anyone else chime in on this?