Legislation focused on providing increased regulatory oversight of brokers and freight forwarders in the trucking industry was introduced this week.
Entitled the “Motor Carrier Prevention Act,” the legislation aims to prevent brokers from abusing the system and defrauding motor carriers, according to its sponsors Senators Olympia J. Snowe (R-Maine) and Amy Klouchbar (D-Minn.).
According to the senators, the objective of this legislation is to prevent brokers from abusing the system and defrauding motor carriers, with a focus on small trucking companies and owner-operators, whom often lack the legal means to recoup losses incurred from fraudulent brokers.
“All too often motor vehicle operators fall victim to the deceitful behavior of fly-by-night brokers and freight forwarders who engage in preposterous criminal activities, such as financial fraud,” said Senator Snowe, a member of the Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety, and Security, which has jurisdiction over the legislation. “By updating current regulations, this legislation will give trucking operators peace of mind that they will, indeed, receive payment for a job well done.”
This legislation was soundly endorsed by the Owner-Operator Independent Drivers Association. OOIDA Executive Vice President Todd Spencer said in a statement that this law would put a stop to a system that allows rogue brokers and scam artists to operate unchecked.
““Too often, we’ve seen bad brokers get away with collecting payment from shippers but leaving truckers holding the bag,” said Spencer.