What to Do When a Freight Broker Doesn’t Pay

When a freight broker doesn’t pay, your escalation path is: send a formal demand letter with a clear deadline, file for TIA arbitration if they’re a TIA member, file an FMCSA complaint to create a formal record, and file a surety bond claim against their federally required $75,000 bond. Each step increases pressure and preserves your legal options.

First: Distinguish Non-Payment From Slow Payment

Not every overdue invoice is a non-payment situation. Before escalating, verify:

Is the invoice past its stated payment terms? (Net 30, Net 45, etc. per the rate confirmation)
Have you submitted with complete documentation? Incomplete invoices are legitimately put on hold
Have you followed up at least twice? Some broker billing queues are slow — not malicious

If the answer to all three is yes and you still haven’t received payment or a formal dispute notification, you’re in non-payment territory.

The Escalation Ladder

Rung 1: Follow-Up and Billing Contact

Before anything formal, make sure you’ve contacted the right person. Reach out to:

The specific billing contact listed on the rate confirmation
Your account manager at the brokerage
The broker’s accounts payable department directly

Send via email (creates a written record) and follow up by phone. A polite but firm message: “Invoice [number] for load [number], dated [date], remains unpaid. Please confirm receipt and provide a payment ETA.”

Rung 2: Formal Demand Letter

If direct contact doesn’t produce a payment timeline, send a formal demand letter. This is a written notice that you intend to pursue formal remedies if payment isn’t received within a specified period.

Your demand letter should include:

Your carrier name, MC number, and contact information
The broker’s name and MC number
Load number, date of service, invoice amount
The rate confirmation reference (and applicable clause establishing the debt)
A list of the evidence you have (GPS data, telematics report, BOL)
A payment deadline (10–15 business days is standard)
A clear statement of what you will do next: “If we do not receive payment by [date], we will file for TIA arbitration, an FMCSA complaint, and a claim against your surety bond.”

Send via email with read receipt and by certified mail.

Rung 3: TIA Arbitration

The Transportation Intermediaries Association offers binding arbitration for carrier-vs-broker payment disputes. If the broker is a TIA member, they’re contractually required to participate.

Filing for TIA arbitration:

Verify the broker’s TIA membership at tianet.org
Contact TIA’s dispute resolution center for current filing instructions
Submit your claim with all supporting documentation
Pay the filing fee (modest relative to most claims)

TIA arbitration typically concludes within 60–90 days. The arbitrator’s decision is binding. Brokers who ignore an arbitration award risk losing their TIA membership.

Rung 4: FMCSA Complaint

File simultaneously with TIA arbitration — these are not mutually exclusive.

Go to nccdb.fmcsa.dot.gov and file a complaint against the broker for non-payment. Include:

Broker MC number and company name
Load details, invoice amount, date
Documentation of your submission and follow-up attempts

The complaint creates a public record in the FMCSA’s database. Brokers who accumulate multiple complaints risk FMCSA investigation and the attention of other carriers and shippers who check the record before doing business with them.

After filing, notify the broker: “We have filed FMCSA complaint reference [number] regarding this matter. We remain available to resolve this directly.”

Rung 5: Surety Bond Claim

If TIA arbitration isn’t available (broker isn’t a TIA member) or the broker isn’t responsive, file directly against their surety bond.

Look up the bonding company in the broker’s FMCSA SAFER record. Contact the surety’s claims department and submit a claim with:

Your invoice and rate confirmation
Proof of delivery
Documentation of your collection attempts
GPS/telematics evidence for accessorial claims

The bond claim process typically takes 60–120 days. If approved, you’re paid from the bond — not from the broker.

File early. The $75,000 bond is shared across all claimants. If a broker has defrauded multiple carriers, early filers get priority.

Rung 6: Legal Action

For large claims where other remedies have failed, civil litigation or small claims court (for lower-value claims) remains an option. Consult a transportation attorney for claims above $10,000.

What NOT to Do

Don’t hold freight hostage. It’s illegal and exposes you to liability.

Don’t post defamatory content publicly. Sharing factual information in carrier communities is fine; making provably false statements is defamation.

Don’t stop all collections after one escalation. Keep moving up the ladder systematically.

Don’t wait too long. Surety bond claim windows are typically 18 months from service. TIA arbitration and legal options also have limits. Start escalating within 60 days of the payment due date.

When the Amount Isn’t Worth Pursuing

For small claims (under $200), the time cost of full escalation may exceed the amount you’d recover. Your decision criteria:

Is this a recurring broker? Document and note the pattern.
Is this part of a larger dispute? Combine multiple unpaid invoices into one claim.
Is the broker a TIA member? Arbitration is low-effort if so.

Even small claims are worth filing an FMCSA complaint about — the record accumulates and protects other carriers.

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What to Do When a Freight Broker Doesn't Pay