It’s my money and I want now!

[lugnut1]

Well actually it just needs to pay a paltry amount of interest. Are you getting yours?

It’s so great to worry about EOBR’s and the other mischief-maker stuff that comes down the line from big brother, but what about the FED regulatory stuff that you’ve missed. I’ll bet less than half of you are getting your due interest on that escrowed money at your carrier. Who knows, maybe back calculated interest will get you a brand new EOBR from your carrier in a color of your choice.

“§ 376.12 That while the escrow fund is under the control of the carrier, the carrier shall pay interest on the escrow fund on at least a quarterly basis. For purposes of calculating the balance of the escrow fund on which interest must be paid, the carrier may deduct a sum equal to the average advance made to the individual lessor during the period of time for which interest is paid. The interest rate shall be established on the date the interest period begins and shall be at least equal to the average yield or equivalent coupon issue yield on 91-day, 13-week Treasury bills as established in the weekly auction by the Department of Treasury.”

How interesting…

 

[lugnut1]

Well, is it possible none of you have ever been paid the required interest on your escrow money?

 

[greg334]

Yes it is possible, but it is in one of those categories that I won't lose sleep over.

 

[lugnut1]

Yes it is possible, but it is in one of those categories that I won't lose sleep over.

But Greg, the sad is that most carriers ARE putting the escrowed money in interest bearing accounts. If a carrier would slip pennies out of your pocket it says they are either ignorant of the rules or they know you are.

I agree that sleep will not be lost, just a little money.

 

[OntarioVanMan]

I've changed carriers once down here...and yes I was paid interest....

 

[BillChaffey]

I had a short tour with Panther from September 2007 to December 2007.Still have my receipts that every thing was returned in the condition it was installed. They still have every thing with held from me.

 

[mcavoy33]

I had a short tour with Panther from September 2007 to December 2007.Still have my receipts that every thing was returned in the condition it was installed. They still have every thing with held from me.

I was going to say that a lot more money is probably lost to drivers from carriers finding a reason to keep it rather than the 1% interest.

 

[greg334]

I understand what you are saying but it is the same problem many see with cheap freight, a lot of people don't like it while a few know how to leverage into something meaningful (profitable).

The companies do use it to make revenue with, they have always done so but some return the minimal amount while others give a little more back. The problem is when you have more than 100 trucks involved at $2500 a pop, that's a good chunk of investment money to work with.

 

[lugnut1]

Re: It’s my money and I want it now!

Yes, the cumulative monies are (as with 100 trucks with monies escrowed) what makes the violation by carriers that do not pay the interest payment upon escrowed funds into a $Larger $Offense.

A law firm could likely make a handsome return angled as a class action against the larger trucking entities.

On the simpler side, just make sure it is included in your lease agreements where appropriate. After all, it is your money.

 

[Dakota]

you sound like a J.G. Wentworth commercial

 

[ATeam]

Diane and I left FedEx Custom Critical in June. Our escrow money was returned with interest.

What carrier does not pay interest on escrow money? Where is the problem?

 

[greg334]

Re: It’s my money and I want it now!

Yes, the cumulative monies are (as with 100 trucks with monies escrowed) what makes the violation by carriers that do not pay the interest payment upon escrowed funds into a $Larger $Offense.

A law firm could likely make a handsome return angled as a class action against the larger trucking entities.

On the simpler side, just make sure it is included in your lease agreements where appropriate. After all, it is your money.

Well I would not want to be part of a class action suit, not enough money for me for my signature on that lawyer's agreement.

ALSO on the simpler side, the law is clear.

 

[Jefferson3000]

Re: It’s my money and I want it now!

Well, if their accounts are anything like ours right now, there's really not much interest being paid to them.

 

[chefdennis]

I got all of my escrowed money and the interest from my previous carrier, but to be honest, LOL, i spend that much and more on a fri night out with my kids....its really not a big deal...LOL...

 

[greg334]

Well if a company keeps the escrow, that's an legal issue but if the compnay takes the escrow payment and uses it to invest with returning you what is required by law - yield on 91-day, 13-week Treasury bills- then it is a So?

The yield is this week I think ... ready ... .015%

So with my $2500 they have I earned 37.5 cents

If they invest that money in say stock, they could have a 8 to 12% return over the year. Combine that with a few hundred trucks and it looks good. Maybe we are all in the wrong end of the business?

 

[mcavoy33]

If they invest that money in say stock, they could have a 8 to 12% return over the year. Combine that with a few hundred trucks and it looks good. Maybe we are all in the wrong end of the business?

Greg,

I have a feeling that there is a considerable amount of accounts that take longer than 3 weeks to pay, so I suspect most carriers use it to pay drivers and overall cash flow for the business.

 

[greg334]

Greg,

I have a feeling that there is a considerable amount of accounts that take longer than 3 weeks to pay, so I suspect most carriers use it to pay drivers and overall cash flow for the business.

Of course they do use the money for other things. The problem that most see is that the letter of the law must be followed but honestly, if you were sitting on $250k to $500k in cash, having it accumulate interest at .015% every 90 days may not be a good thing. I don't think any company actually uses the money and gives the contractors back more than they are required to.

 

[mcavoy33]

Of course they do use the money for other things. The problem that most see is that the letter of the law must be followed.

I don't buy into the big bad carrier is screwing me over mentality. I feel reassured by the fact that when I walk through our company warehouse, I see the owner storing his Mustang, 30' 5th wheel RV, monster truck and other unknown tarped sports car.

Why because I can see that he is making profits. It also reassures me that his 21 year old son is workingas an o/o vanner. It says a lot to me.

I'd much rather work for a carrier that values profit margins and know that they need to put a markup up on things like QC and insurance, it costs money every week for someone to do the paperwork for all these expenses.

I might say I lucked out in finding a good carrier from the start but Iwould have never jumped in if I didn't get the opportunity to assess hi the way I did when I met him.

 

[greg334]

Well a lot of people have that mentality and many 'seasoned veterans' seem to think that they shouldn't pay for things like QC units or what ever while making money with them.

 

[mcavoy33]

that's because they are thinking in employee mode. Either way, the costs will be passed on to them but having cosys itemized when past on to o/o's gives them more information and a better picture of costs. If you have itemized costs like QC and your carrier tries to increase the cost by 50% and no other carriers are doing it, it gives you the opportunity to question motives and expense increases.

It hekps to keep carriers accountable imo.