(sorry for the long post)
My husband & I recently made the move from dump truck to hotshot. We have gotten pretty steady work from a local company but they never seem to have a load coming back - Atlanta to PA/NJ is a typical run - so we are getting a lot of "dead head" costs. I work full time so I can't really help him learn the load board situations while he is on the road. We were thinking about connecting with a dispatching service & even reached out to one when my husband was given a card at a truck stop.
This particular dispatch service charged 6% - 12% depending on the rpm, wanted my signature on a blank piece of paper for load confirmations, my bank account info & signed permission to access my account every Monday to deduct their percentage. I was only able to find a Facebook page when I did a company search when I saw their carrier packet & what they were asking for. It just sounded like a huge scam. When I questioned it, telling them that we too were a small husband/wife team that I had to protect us 1st, that we work through a factoring company that they would only invoice them for our percentage of the load & they could get their percent when the shipper paid them. Also, their big sell was the driver "just had to drive" & they do all the paperwork. Well, I told them that wasn't an issue for us because I do the paperwork & my husband drives. Their reply was that they were burned by a husband & wife team who was booking loads without their knowledge - which I thought was strange because it sounded like they were just upset about not getting their cut but IDK. Also, they claimed to have been burned by a factoring company which is why they use a CPA firm to handle the deductions. Given that I obviously had reservations, you would have thought they would have at least provided the name of the CPA, but no. We agreed we were no a good fit for each other. This was just too many red flags for me, I mean I'm new to the HotShot world not stupid. And if this is the norm, please feel free to call me stupid![]()
All that said, 1st, was I wrong to be skeptical? Is this how dispatchers work? 2nd, should we look for a broker service or another dispatch company? Any advice / suggestions will be greatly appreciated! Thanks in advance!!
New to the HotShot World, would a dispatch service help?
Discussion in 'Expediter and Hot Shot Trucking Forum' started by ACTrucking, Jan 3, 2019.
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
-
Check out this section. Lots of info, lots of reading.
A good place to start.
Expediter and Hot Shot Trucking Forum
The other thing you may want to try, is to contact a member here @flatbedcarrier. May be able to help with the learning curve.ACTrucking and flatbedcarrier Thank this. -
READ THIS CAREFULLY
do not ever give personal info to a dispatcher or carrier other than what is legally required.
There is absolutely no reason to give them a signature on a blank paper, give them banking info or anything like that.
The biggest bullsh*** story I have heard is what you posted, "we got burned before" is a common one, but remember if these scum needs anything from you, they can't afford to pay you in the first place and will screw you.ACTrucking, singlescrewshaker and Aamcotrans Thank this. -
You did right by avoiding this one! I'm a CPA myself with a specialty in fraud and I can tell you this has Red Flags all over it. Reading through your post, I was thinking that at least they use a CPA to handle the transactions, but not giving you the name so you could call and verify? That plus many others - access to your bank account, signing a blank document, claims of "being burned", etc.
The other point I noted was their "sliding scale" for commission based on RPM. That I can't answer as I am not in the business yet, but it looks questionable. It seems a rate is a rate is a rate to me, but I'm curious if this is standard practice?
I'm also curious - this guy who gave your husband a business card. Did this come out of casual conversation, or was this person scouting out prospective drivers? -
My husband was at a truck stop and just walked up & gave him this card. He said that they were great, always kept him loaded, etc. My husband said this guy acted like this company was making him a mint! I want to put his name out there as a warning but I don't want to smear a company's name if he is technically legit with questionable business policies. Their Facebook page has only (1) review & of course it is praising the company. I'd hate for anyone to get rooked by this guy.
-
-
-
Also new to this.
Curious if dispatch service would be good to get my foot in the door.
Having a new authority I’ve seen that a lot of shippers/brokers don’t want to work with us.
That or they try slamming the price way down. Even down to .90-1.25 per mile. Does anyone have any tips on negotiating out of this limbo?
Not trying to steal your thread ACT. Just trying to expand for us new folk. -
Just kinda skimmed through these posts. To much for me to read this late in the day. I’ve been saying this for many, many years now, I can’t say it enough. Never let anyone handle your billing. And watch what you’re signing. There’s a lot of scam artists out there. The only permission (power of attorney) you should be giving a dispatch service is for booking freight for your truck, on your behalf. That’s it.
And watch out for the scandalous factoring companies out there. There’s a bunch of them.unklphil Thanks this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.