Balance Due – Are You At Risk?
"Balance Due" remains a risk for businesses that engage in motor carriage transactions which are not priced according to carrier tariffs or federally valid contracts. IEX contracts prevent any possibility of paying a Balance Due.
How Balance Due Is Created
- ► Shipments are not tariff priced and contracts have not been executed;
- ► Contracts are found federally invalid;
- ► Invoiced charges are less than those under carriers' applicable tariffs.
When Balance Due Is Most Often Experienced
- ► Petition for bankruptcy;
- ► Are purchased by, or merge with, other carriers;
- ► Discover that amounts of balance due exceed the profits that could reasonably be expected from continued operations with a client.
Balance Due Is Most Often Collected
- ► Through order of a federal bankruptcy referee;
- ► When such an order is served, the payer of freight is obligated to pay immediately; but may initiate formal action and introduce arguments to reduce or recover the amount. The statute of limitations for balance due claims is 18 months.