In The News

System allows brokers to work largely unchecked

The recent sentence handed down to an Arkansas man who bilked truckers out of hundreds of thousands of dollars may call into question the inadequate system that allows brokers and scam artists to routinely take advantage of motor carriers.

“It’s just too easy to get a motor carrier number from the Federal Motor Carrier Safety Administration,” said Karen England, supervisor of the Member Assistance Department for the Owner-Operator Independent Drivers Association.

“Anyone with a pulse can apply for authority and get an MC number back right away,” she said. “It has been our experience that even though part of the authority process is to disclose any previous affiliations in the industry, there is no system in place at FMCSA to actually check the information that is provided.”

She explained that simply having the MC number makes brokers look somewhat legitimate, but truckers have to look past that.

In order for the authority to become “active,” the broker has to have insurance on file with FMCSA.

Rogue brokers and scam artists who pose as brokers without any authority can run up huge debt to truckers and motor carriers in as little as 30 days. And, since that is the industry standard practice for payment, it usually means the $10,000 bond won’t even begin to cover what the brokers actually owe.

OOIDA called that problem to light nearly five years ago when it petitioned FMCSA to review the bond limits. Annette Sandberg, then-administrator of FMCSA, granted that petition in early 2004. The agency has yet to move forward on reviewing the bond limits.

In addition to stalling on mandating financially responsible bond amounts, the agency does little to enforce brokers who abuse their authority or go after those who don’t even bother with applying for authority.

John Russell, the broker from Arkansas, is a perfect example of how hard it is to hold brokers accountable for their actions.

For six years, OOIDA officials filed on his bonds that were tapped out, met with Federal Bureau of Investigation agents in Missouri and Arkansas, met with the Florida Attorney General – just to cite a few of the steps.

“It is ridiculous how many agencies turn a blind eye to this behavior,” England said, “especially FMCSA.

“The system is broken and needs fixed, and it’s high time FMCSA stepped up to the plate and got the job done.”

Until moves are made to close the loopholes and enforcement is stepped up, England said it’s imperative truckers verify the active authority and check with the broker’s insurance company on the status of their bond or trust.

Truckers can also call OOIDA’s Member Assistance Department at 800-444-5791 for help in verifying this information.

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