How to Handle Broker Non-Payment: From Demand Letters to BMC-84 / BMC-85 Claims

The freight was delivered, the proof of delivery (POD) was sent back and the invoice is past due. Before spending another afternoon texting, move the account out of the chat thread and check the contract and documents. Start with three questions: Which property broker contracted for the shipment and was invoiced? When did payment come due? Does the fleet still own the right to collect?

Check the broker's legal name, DBA, MC number and USDOT number. Similar trade names, a new contact email or an alias used by dispatch can direct a demand to the wrong entity. If the invoice was factored, read the factoring agreement to determine whether the fleet or the factor owns the receivable. Parallel demands or duplicate claims before ownership is clear can complicate recovery.

Keep one file for the load. Include the broker-carrier agreement, rate confirmation, invoice, bill of lading (BOL), POD and approved lumper or detention charges. Add payment terms, due date, deductions or written disputes, emails and proof of delivery of communications. Make sure the amounts, dates and load numbers agree.

If the broker says the shipment is not in its system or accounting is still checking, ask to review the broker transaction record. Under 49 CFR § 371.3, brokers must retain records of each transaction for three years, including the bill of lading or freight bill number, freight charges collected and the date the carrier was paid. A party to the transaction may inspect its record (“49 C.F.R. § 371.3”). That does not determine the amount due, but it gives both sides something concrete to check.

Once the file is complete, send a written demand. Identify both entities, load and invoice numbers, delivery date, terms, due date, outstanding balance, attachments and a specific date by which you request payment. Ask the broker to identify disputed items, reasons and supporting documents in writing by a stated date. Keep the message, attachments, time sent, bounce notices or proof of receipt. Use direct language without adding interest, penalties, attorney fees or litigation deadlines that the contract does not provide.

Set a follow-up date. In the receivables ledger, record the contact, address used, each reply and promised payment date. If the broker says payment was made, request the date, amount and confirmation number. If documents are missing, identify them and keep the updated submission. Do not apply one grace period to contracts with different payment and dispute terms. If you file a claim, record its number, dates of supplemental submissions and reasons for denial rather than relying on recollections of phone calls.

If the demand does not resolve the matter, check current operating authority and financial responsibility. FMCSA directs users to search entity records in Motus, consult daily decisions and notices in the FMCSA Register and cross-check the Licensing & Insurance Public System and public data. Do not rely only on a screenshot saved months ago (“Move into Motus”; “Rule FAQs”).

Property brokers must maintain $75,000 in total financial security. A surety provides a BMC-84 bond; a qualifying financial institution or trustee provides a BMC-85 trust fund agreement. A carrier may submit an eligible unpaid freight claim to the applicable provider. The $75,000 is the broker's aggregate security, not a separate fund per carrier or invoice (“49 U.S.C. § 13906”; “Insurance Filing Requirements”).

Filing does not guarantee payment. Statutory paths include the broker consenting to payment; the broker failing to respond after adequate notice and the provider determining the claim is valid; or, after reasonable efforts do not resolve the claim, the claimant obtaining a judgment against the broker. The provider must respond on or before the 30th day after receiving notice of a qualifying claim and give written reasons for denial. That is a response deadline, not a promise of payment within 30 days (“49 U.S.C. § 13906”).

Two other periods in the 2026 rules are easily misapplied. Seven business days applies in specified claim notice, drawdown and proposed suspension procedures. It is not an ordinary invoice grace period. The 60-day claim period applies only after financial failure or insolvency and starts when FMCSA publishes notice of cancellation of the financial security in the Register. If valid claims exceed available funds, even uncontested claims may be paid proportionately (“49 C.F.R. § 387.307”; “Rule FAQs”; “Notifications and Responses”).

Separate a regulatory complaint from collection. Suspected violations involving authority, financial responsibility or another matter within FMCSA's jurisdiction may be reported through the National Consumer Complaint Database (NCCDB). FMCSA may use the report to decide whether to investigate. It does not order payment for the fleet or adjudicate an invoice or surety claim (“Eligible Complaints”; “Rule FAQs”).

If the matter remains unresolved, review arbitration, choice of law, jurisdiction, dispute notice and attorney-fee provisions. California small claims procedure requires asking the other party for payment before suing. The general limits cited are $12,500 for an individual or sole proprietor and $6,250 for other business entities. Whether the fleet can file in California, whom to name and whether a deadline is approaching depend on the contract and facts (“Ask for the Money”; “Common Issues in Small Claims”).

This article draws on public information from Title 49 of the U.S. Code, Title 49 CFR, FMCSA and the California Courts Self-Help Guide as of July 13, 2026. It provides general information, not legal, collection or financial advice. Financial responsibility rules, claim procedures, time limits and small claims ceilings may change. Check FMCSA, the current eCFR, court websites and official records. The demand letter below is a sample format; adapt it to the actual contract and circumstances. Contract terms, receivable ownership and disputes differ by fleet. Base collection and claim decisions on the actual documents, and consult a qualified attorney or other professional about significant amounts or legal action.

Sample demand letter

Subject: Payment Demand for Load [Load Number] / Invoice [Invoice Number]

To: [Broker Legal Name and Department / Contact]

Cc: [If Applicable]

Date: [Date]

[Carrier Legal Name] completed the transportation services identified below:

Load Number: [Number]

Invoice Number: [Number]

Pickup Date / Delivery Date: [Date] / [Date]

Rate Confirmation Amount and Approved Accessorial Charges: [Amount and Description]

Payment Terms: [e.g., Net 30; complete from the governing documents]

Due Date: [Date]

Outstanding Balance as of [Date]: USD [Amount]

Please remit the outstanding balance by [Specific Date] using the following payment instructions: [Payment Method and Required Information].

If you dispute all or part of this balance, please provide a written response by [Specific Date] identifying each disputed item, the basis for the dispute, and supporting documents. If payment has already been issued, please provide the payment date, amount, and confirmation number so the parties can reconcile their records.

Attachments: [Broker-Carrier Agreement / Rate Confirmation / Invoice / Bill of Lading / Proof of Delivery / Approved Charges / Other]

This letter documents a payment demand and related communications. It does not waive any rights that [Carrier Legal Name] may have under the applicable agreement or law.

Contact: [Name / Title / Phone / Email]

[Carrier Legal Name]

Office of the Law Revision Counsel. “49 U.S.C. § 13906: Security of Motor Carriers, Motor Private Carriers, Brokers, and Freight Forwarders.” United States Code, U.S. House of Representatives, https://uscode.house.gov/view.xhtml?req=(title:49%20section:13906%20edition:prelim). Accessed 13 July 2026.

Electronic Code of Federal Regulations. “49 CFR § 387.307: Property Broker Surety Bond or Trust Fund.” eCFR, https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387/subpart-C/section-387.307. Accessed 13 July 2026.

Electronic Code of Federal Regulations. “49 CFR § 371.3: Records to Be Kept by Brokers.” eCFR, https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-371/section-371.3. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “Broker and Freight Forwarder Financial Responsibility Rule Overview and Compliance Requirements.” U.S. Department of Transportation, 30 Apr. 2026, https://www.fmcsa.dot.gov/registration/broker-and-freight-forwarder-financial-responsibility-rule-overview-and-compliance. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “Broker and Freight Forwarder Financial Responsibility Rule FAQs.” U.S. Department of Transportation, 13 July 2026, https://www.fmcsa.dot.gov/registration/broker-and-freight-forwarder-financial-responsibility-rule-faqs. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “Notifications and Responses to FMCSA by Surety and Trust Providers, Brokers and Freight Forwarders.” U.S. Department of Transportation, 24 Nov. 2025, https://www.fmcsa.dot.gov/registration/notifications-and-responses-fmcsa-surety-and-trust-providers-brokers-and-freight. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “Move into Motus.” U.S. Department of Transportation, 18 May 2026, https://www.fmcsa.dot.gov/registration/move-motus. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “Insurance Filing Requirements.” U.S. Department of Transportation, 26 Mar. 2026, https://www.fmcsa.dot.gov/registration/insurance-filing-requirements. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “Eligible Complaints.” U.S. Department of Transportation, 13 Feb. 2026, https://www.fmcsa.dot.gov/consumer-protection/eligible-complaints. Accessed 13 July 2026.

Federal Motor Carrier Safety Administration. “National Consumer Complaint Database FAQs.” U.S. Department of Transportation, 5 Mar. 2026, https://www.fmcsa.dot.gov/consumer-protection/national-consumer-complaint-database-faqs. Accessed 13 July 2026.

Judicial Branch of California. “Ask for the Money.” California Courts Self-Help Guide, https://selfhelp.courts.ca.gov/small-claims/ask-for-money. Accessed 13 July 2026.

Judicial Branch of California. “Common Issues in Small Claims.” California Courts Self-Help Guide, https://selfhelp.courts.ca.gov/small-claims/before-you-start/common-issues. Accessed 13 July 2026.