FMSCA to Delay Oct. 1 Deadline For $75,000 Broker Bond Requirement

Posted in: Business Factoring News, Freight Bill Financing News, Freight Factoring News, Staffing Company Finance News, Staffing Faqctoring News, Trucking Finance News, Trucking Financing News- Sep 11, 2013 No Comments

The Federal Motor Carrier Safety Administration announced it is delaying until Nov. 30 the deadline for freight brokers to comply with a rule that requires them to increase their security bonds to $75,000 from $10,000.

In a notice published Sept. 5 in the Federal Register, FMCSA said it “will be providing a 60-day phase-in period” starting Oct. 1 to allow the industry to complete all necessary filings. FMCSA had previously said it would enforce the new bond level Oct. 1.

Beginning Nov. 1, FMCSA “will mail notifications to all brokers and freight forwarders that have not met the $75,000 minimum financial security requirement” and will “provide 30 days advance notice before revoking the freight forwarder and broker operating authority registrations.”

MAP-21, the transportation re authorization bill approved last year, increased the broker bond requirement.

The Association of Independent Property Brokers and Agents filed suit July 16 in federal court asking that the bond amount be declared “arbitrary and not reasonably related” to any effort to weed out fraudulent brokers.

By Michele Fuetsch, Staff Reporter