freight claims: payment or issue credit

[mtltrans]

We are settling a claim with a Transforce member company. Carriers typically issue cheques when a claim is settled but the company in question says that they only issue credits.

Is this allowed under claims law?

Thanks

 

[MikeJr]

Credit? Issuing a freight broker a credit instead of cutting a cheque to the beneficial owner of the goods sounds extremely strange. The customer's claim is vs. the transporting carrier not you...

Remember, assuming it's a damage claim all you are doing is sharing information between the claimant (your customer) and the carrier. You should have nothing to do with monies at all. Usually.

Keep well,
Mike

 

[marylou]

I am no lawyer but sounds ridiculous. Just tell them that is not illegal and see what they say.

 

[loaders]

That may be their standard practice when they deal with their direct, repeat clients. If you are not one of them, or plan on using this carrier again anytime soon, ask for a cheque, EFT, or bank draft.

 

[ed1]

How much was the claim?
If it was less than 500-1000 with a regular customer we have often done that.

 

[Freight Broker]

Sounds sketchy to me. And what happens if you don't need their services for a long time/ever again? You'd have the credit just sitting there. No thanks.. I'd insist on check.

 

[ed1]

Like I said with a regular customer.
Usually they already owe me that amount.

 

[tasuinam]

Not to mention - if they work for credit and not $$$ you are bottom of the totempole to get serviced

 

[loaders]

I doubt that a Transforce company would be actively involved in some sort of nefarious scheme to deny a client the settlement of a legitimate claim. We offer a credit to our regular, repeat customers when a claim occurs, if they agree of course. If you aren’t agreeable to receiving a credit note as opposed to a cheque, just tell them. If you want LCBO gift cards or Bitcoin as payment for the claim, you could ask them for those.

 

[mtltrans]

How much was the claim?
If it was less than 500-1000 with a regular customer we have often done that.

The settlement amount was a bit less than $200.

 

[chica123]

Is there a chance that you might be overthinking this? Maybe they offered a credit because they thought from their point of view, it would save issuing a cheque, or transferring monies. You might just come out and say that you would prefer to be done with the matter rather than have it hang over you for some time in the future and would like a cheque issued.

 

[mtltrans]

Is there a chance that you might be overthinking this? Maybe they offered a credit because they thought from their point of view, it would save issuing a cheque, or transferring monies. You might just come out and say that you would prefer to be done with the matter rather than have it hang over you for some time in the future and would like a cheque issued.

No, we have an accounting policy where we try to match incoming funds with outgoing funds. We found out that it's a TFI thing, so it's fine.

 

[chica123]

Yeah, that is weird that such a big company would do that. I probably would have wanted a cheque to get it done with..

 

[Jim L]

Usually the payment is the proof that the claim is complete and taken care of. We usually get the claimant to sign off a release so that the cheque gets cut. This doesn't make any sense to me but if it is only $200.00....