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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We hear a lot about owner operator truck drivers getting ripped off on jobs. I am happy to see this article and hope it helps out our owner operators that make a decent living working hard on the road. Thanks for the report!
Regarding H.R.2357 – Fighting Fraud in Transportation Act of 2011
Last June, similar proposed legislation was introduced into the Senate (S. 3483) called the “The Motor Carrier Protection Act of 2010.” This bill would have, among other things, raised the financial security of property brokers who are licensed by the FMCSA tenfold from $10,000 to $100,000. That bill died in committee after we contacted the members of the Committee on Commerce, Science & Transportation and pointed out the adverse impacts on small business.
The AIPBA similarly opposes HR-2357 in that it too seeks to implement a $100,000 property broker bond. If the bond were to be drastically increased as proposed, then small and mid-sized property brokers would not be able to afford the premium and/or the cash collateral requirements that would be imposed by surety companies. As a result, thousands of small business owners, including our members, would be forced out-of-business. Tens of thousands of employees and agents would lose their jobs.
Listen to our radio interview regarding big business’ attempt to squeeze out the little guys in the transportation industry… http://podcasting.fia.net/6797/4796147.mp3 or download direct from http://www.midnighttrucking.com/sectional.asp?id=25018, Thurs. July 7th Hour 2