Factoring companies and double brokered loads.

[DBHill]

You may want to go after the shipper, receiver and factoring company if they collected the funds for your shipment or no one has paid you.

 

[DBHill]

Factoring companies should be ensuring they are not financing double brokered shipments.

 

[loaders]

Factoring companies should be ensuring they are not financing double brokered shipments.

Unfortunately, by the time you learn that a shipment has been double brokered, the scam carrier has been paid. As others have said, no matter how you slice this thing, it is ultimately the brokers responsibility that the carrier he chooses, is legitimate, properly registered and insured, has Workers Comp coverage, or it’s equivalent for his employees and lastly but most importantly, will employ his own assets to provide the service you are paying for. Factored invoices and especially “quick pay” scenarios require a much higher degree of diligence in order to detect possible double brokering.

 

[DBHill]

Isn't the factoring company in receipt of funds meant for the end carrier? In a way they are in receipt of trust funds.

 

[loaders]

Isn't the factoring company in receipt of funds meant for the end carrier? In a way they are in receipt of trust funds.

Actually, the factor is in receipt of funds that are due to them, as they have already paid the fraudulent carrier. It is a perplexing scenario for sure. The factor, in my opinion, is not a party to the contract of carriage. That contract is between the shipper, or whomever is responsible for the payment of the freight charges as described on the Bill of Lading, and the carrier. If the carrier who actually hauled the load, and whose name appears as the carrier on the B/L hasn’t been paid for his services, he has every right to pursue everyone involved for his payment. In most cases however, this results in either the shipper, or the freight broker, paying twice for the same service.