Guide

What to do when a broker doesn't pay

Nonpayment by a freight broker is one of the most frustrating situations in trucking — the carrier moved the freight, delivered it on time, and submitted the invoice, and then nothing happens. This guide covers the practical steps from the first missed payment through escalation options, dispute programs, and last-resort collections tools.

Before the load moves — prevention first

The easiest way to avoid a nonpayment problem is to not accept loads from brokers who are likely to not pay. Before hauling for a new broker, take 30 seconds to look them up:

• Check the broker's authority on SAFER: Look up the broker's MC number on the FMCSA SAFER system (safer.fmcsa.dot.gov). An active authority is the minimum — a revoked or inactive MC number means the broker should not be operating at all.
• Check the broker's bond: Federal law requires freight brokers to maintain a $75,000 surety bond (BMC-84) or trust fund agreement (BMC-85). The bond is on file with FMCSA and visible in the SAFER record. A broker without a bond is operating illegally.
• Check payment history: Carrier411, the TIA Credit Exchange, and freight broker review communities provide payment history information. Brokers with multiple payment complaints or slow-pay patterns show up in these databases. A broker with consistent 60-day+ pay history or multiple disputes is a higher risk.
• Read the rate confirmation payment terms: Know whether the rate confirmation specifies payment terms (net-15, net-30, net-45) and whether there are chargebacks, setoffs, or dispute clauses that could delay or reduce payment.

Step 1: Confirm the invoice was received and is complete

The most common reason for delayed payment is not malice — it is a missing document. Before treating a late payment as nonpayment, verify that the broker has everything they need to process the invoice:

• Invoice submitted with the correct load number or reference number
• Signed rate confirmation included (some brokers require it with every invoice)
• Signed POD (proof of delivery) attached — this is the most commonly missing document
• Invoice sent to the correct billing contact or email address (not the load agent who booked the load, who often cannot process payments)
• If the broker uses a freight payment portal (Triumph Pay, RTS Financial, TriumphPay, etc.), the invoice may need to be submitted through that portal rather than by email

Call or email the broker's accounts payable contact — not the load agent — and confirm receipt and completeness. Ask if there is anything missing that is holding the invoice. This step resolves a surprising percentage of "nonpayment" situations.

Step 2: Send a formal written payment request

If the invoice is complete, confirmed received, and the payment term has passed, send a written payment request by email. This does several things: it creates a timestamped paper trail of your follow-up, it is less dismissible than a phone call, and it puts the broker on notice that you are tracking the situation.

The email should include:

• The invoice number, load reference number, and original invoice date
• The amount owed
• The payment term on the rate confirmation (e.g., "per the rate confirmation dated [date], payment was due net-30, which was [specific date]")
• A request for payment by a specific date (give 5–7 business days from your email)
• Attachments: the original invoice, the signed rate confirmation, and the signed POD

Keep a copy of this email. It is your documentation that you made a written demand before escalating.

Step 3: Escalate within the brokerage

If the written request to accounts payable produces no response or a response without payment, escalate within the brokerage. Contact the broker's compliance department, operations manager, or owner if it is a smaller brokerage. A load agent who books freight may have no authority over payments — go around them to someone who does.

State the situation factually: freight was delivered, invoice submitted on [date], payment term was [terms], payment is now [X] days overdue. Ask for a payment date commitment in writing. A broker who is having cash flow issues but intends to pay may offer a payment plan — get it in writing before agreeing to anything.

Step 4: File a claim against the broker's bond

If the broker will not pay after escalation within the brokerage, the carrier can file a claim against the broker's $75,000 surety bond. This is the formal legal remedy built into the broker authority system for exactly this situation.

How to file a bond claim:

1. Find the name of the surety company that holds the broker's bond — look it up on the FMCSA SAFER record for the broker's MC number
2. Contact the surety company's claims department directly
3. Provide documentation: the rate confirmation, the signed POD, your invoice, and proof of your written payment demands
4. The surety company investigates and, if the claim is valid, pays the carrier up to the bond amount

Bond claims have a time limit — typically 18 months from the date of the delivery or the date of payment default, though this varies by bond. Do not wait. A claim filed years after the fact will likely be rejected on timeliness grounds.

Bond claims are most effective for clear nonpayment situations where the broker has no legitimate dispute — freight delivered, invoice submitted, no response. If the broker is disputing the amount or the delivery, bond claims become more complicated.

Step 5: TIA arbitration (if the broker is a TIA member)

The Transportation Intermediaries Association (TIA) operates an arbitration program for payment disputes between carriers and TIA-member brokers. TIA arbitration is faster and cheaper than court — a binding arbitration decision can typically be obtained in weeks rather than months.

TIA arbitration is only available when the broker is a TIA member. Check the TIA website (tianet.org) to verify membership. The carrier files a complaint, pays a small filing fee, and the TIA arbitration process handles the dispute. Decisions are binding on TIA members as a condition of membership.

For disputes under $10,000, TIA also offers a simpler expedited process. Check the current TIA guidelines for fee schedules and process details.

Step 6: Small claims court

For smaller disputed amounts — typically under $10,000, though limits vary by state — small claims court is an accessible option that does not require an attorney. You file in the court that has jurisdiction over the broker (typically based on where the broker's principal office is located or where the contract was entered into).

Small claims suits require documentation. Bring the rate confirmation, the invoice, the signed POD, your written payment demands, and any response from the broker. Courts that handle small business payment disputes regularly see cases like this and tend to be straightforward when documentation is solid.

Winning a small claims judgment is one thing; collecting on it is another. If the broker has assets, a judgment can be used to garnish bank accounts or place liens. If the broker is insolvent, a judgment may be collectible in theory but uncollectible in practice.

Step 7: Commercial collections or freight attorney

For larger amounts or cases where the broker is actively disputing the claim, a commercial collections agency that specializes in freight or a transportation attorney may be worth the cost. Freight attorneys know how to pursue claims under the Carmack Amendment, bond claims, and broker liability law in ways that self-help options do not.

Collections agencies typically take a percentage of what they collect (30–50% is common for freight collections). An attorney may charge hourly or on contingency depending on the amount. For amounts over $5,000–$10,000 that a broker is stonewalling, professional help often recovers more than self-help attempts.

What to do if the broker has gone out of business

When a broker closes without paying outstanding invoices, carriers have two main options:

• Bond claim: File against the surety bond immediately. Brokers who close typically have open bond claims — the surety pays out claims against the bond balance, which may be less than total outstanding invoices if many carriers are owed money.
• Bankruptcy proceedings: If the broker files for bankruptcy, unpaid carrier invoices are typically unsecured debts. Carriers can file a proof of claim in the bankruptcy proceeding to be included in any distribution. Unsecured creditors often recover cents on the dollar, but filing the claim is necessary to be included at all.

What not to do

• Do not threaten or post publicly before pursuing formal remedies: Public accusations without documented support can create legal exposure for the carrier. Let the documentation speak first.
• Do not haul again for a non-paying broker while the dispute is open: Carriers who continue accepting loads from a broker who has not paid prior invoices are funding the broker's operation with their own money.
• Do not accept a partial payment as full settlement without understanding what you are agreeing to: Some partial payments come with release language — signing that you accept partial payment "in full satisfaction" of the invoice means you give up the remaining balance. Read what you sign.
• Do not let time run: Bond claim deadlines, statutes of limitations for breach of contract, and arbitration program timelines all run against the carrier. Following up slowly benefits the non-paying party.

This guide explains general collections processes for freight payment disputes for orientation purposes. The availability and effectiveness of specific remedies — bond claims, TIA arbitration, small claims, commercial collections — depend on the specific facts, jurisdiction, and current program terms. Consult a transportation attorney for claims that involve significant amounts or contested facts.