Broker Fraud

Updated

A broker is a service provider that arranges for the transportation of property by a carrier for compensation. A broker does not physically transport the property and does not assume responsibility for the property.

While a broker does not physically handle your shipment, they are ultimately responsible to making sure that your shipment is delivered safely. 

Using uShip will give you the opportunity to work with carriers or brokers. If you're working with a broker, here's what you should be aware of:

Brokering Without Authority

In order to act as a broker, a provider is require to have FMCSA operating authority, also referred to as an "MC," "FF," or "MX" number, depending on the type of authority that is granted. The MC number must have active "Broker" authority.

While less common than a broker for vehicles or heavy equipment shipping, individuals or entities offering international shipping may be an Ocean Freight Forwarder or a Non-Vessel-Operating Common Carrier (NVOCC). Both are required to obtain a license from the Federal Maritime Commission.

If you have booked with a carrier but the person or company that you booked with gave your shipment to someone else to complete without your express permission, please inform Member Support. They may be brokering without authority. 

Increasing the Price of Services

You are not required to pay more than you originally agreed upon unless there is a discrepancy in your listing such as the weight or quantity of items, the type of delivery location, or the packaging of your goods. Per federal regulations, your broker is required to bill any additional charges withing 30 days of delivery of goods. Any price adjustments should be made in a written, signed contract.

Undelivered Shipments

If your provider has picked up but failed to deliver your shipment, then they have violated the federal regulations for the protection of household good shippers. Please contact support and file a complaint with the FMCSA online or call 1-888-DOT-SAFT (1-888-368-7238). 

Examples of Broker Complaints

  • My carrier is holding my shipment hostage for more money than originally agreed upon. 
  • My broker does not have the required authority from the FMCSA.
  • My broker does not have the required insurance on file with the FMCSA.
  • My broker failed to acknowledge, process and settle my loss and damage within 120 days of receipt.
  • My broker does not belong to a dispute settlement agency to handle loss and damage claims.

 

If you have additional questions, please feel free to continue perusing our Help Center or contact our Member Support team directly by clicking here.

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