Truck companies and escrow question

[Highway Junkie]

Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(

I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I misunderstanding it?
Please clarify this for me. Thanks again in advance!

Sincerely and Blessings,

Eric G.

[Joyce]

Eric,,,,,

Well I have gotten a lot of use on this
one Phase of Trucking,
Escrow, you will be asked for approximately $l,000.00 for them to hold
in case of (according to our history,)
you use their fuel card, they may take the
money from it and pay the card, within
a week of your using is, then put back
the money when you get paid...
or if you saw a hole in a container, and
took it out, didn't write it up or notify
the place you got it, before hand, they
will probably charge you for the repair,
out of it.
or an it's for o/o,,,read the lease, it may
contain a statement if you leave and give
no notice forso many days, they will take
anywhere from $300 to $500. from your
escrow,
Also, if you don't use anything that has
to be taken out of escrow, they have to
return it to you within 45 days of your leaving them, with interest,
(however
that never happens)....I have had to
go to OOIDA and have them get the
escrow back for us.)(owner operator
idependent operators assoc. ) it's
a trucking group. with over one hundred
thousand truckers in it..you can obtain
a free copy at most truck stps...

Best of all, you ought to get an attorney
to review the lease for you,,,they cheat, and steal where ever they can.

Last, they will take $l00. out of your
settlement each week until the $l,000
is put into escrow.....

I believe company drivers don't pay this,
However the above is what we have run
into.....joyce

[kc0iv]

Post by Joyce
Eric,,,,,
Well I have gotten a lot of use on this
one Phase of Trucking,
Escrow, you will be asked for approximately $l,000.00 for them to hold
in case of (according to our history,)
you use their fuel card, they may take the
money from it and pay the card, within
a week of your using is, then put back
the money when you get paid...
or if you saw a hole in a container, and
took it out, didn't write it up or notify
the place you got it, before hand, they
will probably charge you for the repair,
out of it.
or an it's for o/o,,,read the lease, it may
contain a statement if you leave and give
no notice forso many days, they will take
anywhere from $300 to $500. from your
escrow,
Also, if you don't use anything that has
to be taken out of escrow, they have to
return it to you within 45 days of your leaving them, with interest,
(however
that never happens)....I have had to
go to OOIDA and have them get the
escrow back for us.)(owner operator
idependent operators assoc. ) it's
a trucking group. with over one hundred
thousand truckers in it..you can obtain
a free copy at most truck stps...
Best of all, you ought to get an attorney
to review the lease for you,,,they cheat, and steal where ever they can.
Last, they will take $l00. out of your
settlement each week until the $l,000
is put into escrow.....
I believe company drivers don't pay this,
However the above is what we have run
into.....joyce

I have to ask why would anyone sign a lease with such a clause? And
why would you use a company fuel card?

kc0iv

[Amy D]

Post by Highway Junkie
Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(
I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I misunderstanding it?
Please clarify this for me. Thanks again in advance!
Sincerely and Blessings,
Eric G.

This is for lease/purchase almost always and O/O's often. Although
since they got in trouble legally using "escrows" they are now called
"performance bonds", "maintennance funds", and "tire funds", etc. You
won't have to deal with this as a company driver.

amy

[Wavking]

It's mostly for owner operators, but some company drivers also have to pay
into an escrow-type account. But it's never as much as O/O.

In basic terms, funds held in escrow are simply being held in safe keeping,
for a specific purpose. Sometimes they are held by a neutral third party.
When dealing with buying a house, which is what most people think of when
they hear the term, you pay your first year's taxes and insurance up front
and the bank holds it in escrow and then pays it out month by month with
your mortgage.

When a company driver has money held in escrow, it's just a little extra
held so that when he quits or is fired, they can recover any losses/expenses
that may be more than your last paycheck, especially since some people can
rack up hefty advances. For example: You plan on quitting next week so on
Sunday you max out your advance and then abandon the truck. You don't have
any paid miles and you owe the company money. But they already have your
escrow money....

The bottom line is it is a reactionary measure since some companies have
been burned by drivers quitting and going out with a vengeance.

Think of it as a security deposit.

My company held $25 a week for 8 weeks to total $200. They hold it for 2
years ( just to make sure you're going to be a good boy and stay for a
while) then they give it back.

This is the second company I have worked for that does that.

Post by Highway Junkie
Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(
I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I misunderstanding it?
Please clarify this for me. Thanks again in advance!
Sincerely and Blessings,
Eric G.

[Amy D]

What kind of company job can hold any of your wages for any reason?

amy

Post by Wavking
It's mostly for owner operators, but some company drivers also have to pay
into an escrow-type account. But it's never as much as O/O.
In basic terms, funds held in escrow are simply being held in safe keeping,
for a specific purpose. Sometimes they are held by a neutral third party.
When dealing with buying a house, which is what most people think of when
they hear the term, you pay your first year's taxes and insurance up front
and the bank holds it in escrow and then pays it out month by month with
your mortgage.
When a company driver has money held in escrow, it's just a little extra
held so that when he quits or is fired, they can recover any losses/expenses
that may be more than your last paycheck, especially since some people can
rack up hefty advances. For example: You plan on quitting next week so on
Sunday you max out your advance and then abandon the truck. You don't have
any paid miles and you owe the company money. But they already have your
escrow money....
The bottom line is it is a reactionary measure since some companies have
been burned by drivers quitting and going out with a vengeance.
Think of it as a security deposit.
My company held $25 a week for 8 weeks to total $200. They hold it for 2
years ( just to make sure you're going to be a good boy and stay for a
while) then they give it back.
This is the second company I have worked for that does that.

Post by Highway Junkie
Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(
I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I misunderstanding it?
Please clarify this for me. Thanks again in advance!
Sincerely and Blessings,
Eric G.

[Wavking]

I thought I explained it pretty well. Did you not understand, or do you
simply not believe that it CAN happen?

Post by Amy D
What kind of company job can hold any of your wages for any reason?
amy

Post by Wavking
It's mostly for owner operators, but some company drivers also have to
pay into an escrow-type account. But it's never as much as O/O.
In basic terms, funds held in escrow are simply being held in safe
keeping, for a specific purpose. Sometimes they are held by a neutral
third party. When dealing with buying a house, which is what most people
think of when they hear the term, you pay your first year's taxes and
insurance up front and the bank holds it in escrow and then pays it out
month by month with your mortgage.
When a company driver has money held in escrow, it's just a little extra
held so that when he quits or is fired, they can recover any
losses/expenses that may be more than your last paycheck, especially
since some people can rack up hefty advances. For example: You plan on
quitting next week so on Sunday you max out your advance and then abandon
the truck. You don't have any paid miles and you owe the company money.
But they already have your escrow money....
The bottom line is it is a reactionary measure since some companies have
been burned by drivers quitting and going out with a vengeance.
Think of it as a security deposit.
My company held $25 a week for 8 weeks to total $200. They hold it for 2
years ( just to make sure you're going to be a good boy and stay for a
while) then they give it back.
This is the second company I have worked for that does that.

Post by Highway Junkie
Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(
I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I
misunderstanding it?
Please clarify this for me. Thanks again in advance!
Sincerely and Blessings,
Eric G.

[Amy D]

I believe anything can happen. I don't believe any company should be
allowed to hold escrows out of a company driver's check for any reason.
They always have the final check for that crap. <which is what
happened with the theives Ron just left>. I've never heard of a company
job holding escrow---have you worked for one? Why would you do that?

amy

Post by Wavking
I thought I explained it pretty well. Did you not understand, or do you
simply not believe that it CAN happen?

Post by Amy D
What kind of company job can hold any of your wages for any reason?
amy

Post by Wavking
It's mostly for owner operators, but some company drivers also have to
pay into an escrow-type account. But it's never as much as O/O.
In basic terms, funds held in escrow are simply being held in safe
keeping, for a specific purpose. Sometimes they are held by a neutral
third party. When dealing with buying a house, which is what most people
think of when they hear the term, you pay your first year's taxes and
insurance up front and the bank holds it in escrow and then pays it out
month by month with your mortgage.
When a company driver has money held in escrow, it's just a little extra
held so that when he quits or is fired, they can recover any
losses/expenses that may be more than your last paycheck, especially
since some people can rack up hefty advances. For example: You plan on
quitting next week so on Sunday you max out your advance and then abandon
the truck. You don't have any paid miles and you owe the company money.
But they already have your escrow money....
The bottom line is it is a reactionary measure since some companies have
been burned by drivers quitting and going out with a vengeance.
Think of it as a security deposit.
My company held $25 a week for 8 weeks to total $200. They hold it for 2
years ( just to make sure you're going to be a good boy and stay for a
while) then they give it back.
This is the second company I have worked for that does that.

Post by Highway Junkie
Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(
I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I
misunderstanding it?
Please clarify this for me. Thanks again in advance!
Sincerely and Blessings,
Eric G.

[Wavking]

Post by Amy D
They always have the final check for that crap.

NO THEY DON'T always. That's why they do it. I already explained a typical
scenario. Go back and read my first reply. Again.

[Wavking]

Post by Amy D
I believe anything can happen. I don't believe any company should be
allowed to hold escrows out of a company driver's check for any reason.
They always have the final check for that crap. <which is what happened
with the theives Ron just left>. I've never heard of a company job holding
escrow---have you worked for one? Why would you do that?

I just thought about this from a different perspective. There was another
recent thread by a rookie trying to get a handle on his pay and one of the
factors is his paycheck comes 2 weeks after the close of the pay period. To
me, that is a greater crime than holding my piddly $200.

I have worked under both circumstances and I would much rather have a timely
paycheck with a small escrow instead of no escrow and always being 2 weeks
behind.

In essence, you are always one paycheck in the hole. That serves the same
purpose as escrow without calling it that.

I also hated being paid every 2 weeks (or twice a month). The numbers come
out the same--you're always waiting to get paid. One place I used to work
actually changed their payroll in the drivers' favor. They used to be 2
weeks behind and at the end of one year, they got caught up and everyone got
2 paychecks that one week.

I like where I am now. I work days 1 through 7, on day 11 I can find out
what the check will be, on day 13 it is in the bank.

[Amy D]

Post by Wavking

Post by Amy D
I believe anything can happen. I don't believe any company should be
allowed to hold escrows out of a company driver's check for any reason.
They always have the final check for that crap. <which is what happened
with the theives Ron just left>. I've never heard of a company job holding
escrow---have you worked for one? Why would you do that?

I just thought about this from a different perspective. There was another
recent thread by a rookie trying to get a handle on his pay and one of the
factors is his paycheck comes 2 weeks after the close of the pay period. To
me, that is a greater crime than holding my piddly $200.
I have worked under both circumstances and I would much rather have a timely
paycheck with a small escrow instead of no escrow and always being 2 weeks
behind.
In essence, you are always one paycheck in the hole. That serves the same
purpose as escrow without calling it that.
I also hated being paid every 2 weeks (or twice a month). The numbers come
out the same--you're always waiting to get paid. One place I used to work
actually changed their payroll in the drivers' favor. They used to be 2
weeks behind and at the end of one year, they got caught up and everyone got
2 paychecks that one week.
I like where I am now. I work days 1 through 7, on day 11 I can find out
what the check will be, on day 13 it is in the bank.

It took time to adjust from "two week pay" to "weekly pay" but we prefer
weekly now. It's all in getting your bills lined up. We haven't had
"two week pay" for hmmmm....over 5 years.

I wasn't trying to be confrontational or disbelieving -- I just have
never heard of escrows being held on a company driver....and really
don't think it sounds legal.

amy

[Chuck U. Farley]

Chuck U. Farley intoned thusly:
Well, Ames, unfortunately, just about anything is legal in trucking if the
driver goes along with it. Or until OOIDA files a class-action suit, LOL!

"Where did all these f****** Indians come from?" - General Custer


<snip>

Post by Amy D
I wasn't trying to be confrontational or disbelieving -- I just have
never heard of escrows being held on a company driver....and really
don't think it sounds legal.
amy

[Chuck U. Farley]

Chuck U. Farley intoned thusly:
Sure it can happen, question is, why? I would never go to work for a
company that tried that shit. If they don't trust me, why should I trust
them?
"What the f*** was that?" - Mayor of Hiroshima

Post by Wavking
I thought I explained it pretty well. Did you not understand, or do you
simply not believe that it CAN happen?

Post by Amy D
What kind of company job can hold any of your wages for any reason?
amy

Post by Wavking
It's mostly for owner operators, but some company drivers also have to
pay into an escrow-type account. But it's never as much as O/O.
In basic terms, funds held in escrow are simply being held in safe
keeping, for a specific purpose. Sometimes they are held by a neutral
third party. When dealing with buying a house, which is what most people
think of when they hear the term, you pay your first year's taxes and
insurance up front and the bank holds it in escrow and then pays it out
month by month with your mortgage.
When a company driver has money held in escrow, it's just a little extra
held so that when he quits or is fired, they can recover any
losses/expenses that may be more than your last paycheck, especially
since some people can rack up hefty advances. For example: You plan on
quitting next week so on Sunday you max out your advance and then abandon
the truck. You don't have any paid miles and you owe the company money.
But they already have your escrow money....
The bottom line is it is a reactionary measure since some companies have
been burned by drivers quitting and going out with a vengeance.
Think of it as a security deposit.
My company held $25 a week for 8 weeks to total $200. They hold it for 2
years ( just to make sure you're going to be a good boy and stay for a
while) then they give it back.
This is the second company I have worked for that does that.

Post by Highway Junkie
Hello again. This is Eric (the soon-to-be-rookie-in-training). Thank you all
for answering my questions earlier. Now I have another one. Sorry... :-(
I don't have all the details, but I read something about "escrow" being taken
by truck companies. I know nothing about what escrow is, only that it has to
do with buying a house or something like that. I read that a truck company
will deduct payments for it. Is this a company-driver thing or owner-operator
thing? What is it for, and why do they take it? Or am I
misunderstanding it?
Please clarify this for me. Thanks again in advance!
Sincerely and Blessings,
Eric G.