The Owner-Operator Independent Drivers Association (OOIDA) applauded the introduction of the “Fighting Fraud in Transportation Act,” HR2357, in the U.S. House of Representatives today.
“This law would put a stop to a system that allows ruthless brokers and scam artists to continue to operate unchecked,” says Todd Spencer, Executive Vice President of OOIDA. “Too often, we’ve seen deceitful brokers get away with collecting payments from shippers but cheating truckers out of what is rightfully theirs.”
U.S. Rep. Frank Guinta (R-N.H.) along with U.S. Rep. Russ Carnahan (D-Mo.), introduced the bill in response to concerns about unscrupulous brokering practices that continually take advantage of small-business truckers. The congressmen worked closely with OOIDA and the Transportation Intermediaries Association (TIA) and the American Trucking Associations (ATA) to develop their legislation.
“In many instances, brokers provide a valuable service to truckers and the transportation industry. However, the current system is loose enough that it provides ample, fertile ground for fraud. This has gone on far too long. It needs to stop,” Spencer also said.
The “Fighting Fraud in Transportation Act” will:
- Increase the broker surety bond requirement from $10,000 to $100,000 and expand that bond requirement to freight forwarders.
- Increase requirements and disclosures for any person or company seeking to obtain broker or freight forwarder authority.
- Establish significant penalties for violations of broker regulations, including unlimited liability for freight charges for conducting brokerage activities without a license or bond.
- Establish strict guidelines for companies that provide brokers with surety bonds and on how they administer bonds.
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