Do not become a TransCentral, Inc. Victim!!!
We are a small trucking company located in Lakewood, California. We run a small fleet of local and over-the-road refrigerated and dry freight loads. We signed on with TransCentral, Inc. Factoring company because it is sometimes difficult collecting the income from brokerage companies after providing our services. TransCentral made a lot of great promises and were very accommodating and helpful while walking us through the sign-up process.initially, factoring with this company sounded like a great way to turn over our profits much faster. For only 2% of the take, TransCentral promised to reduce payment-wait time from an average of 30 to 45 days down to only 2 days. Additionally, you can terminate the contract at any time if you are unhappy with the service you are receiving. So we signed a contract with this factoring company, paid all of the sign-up fees, and gave them a list of all of the customers with which we did our business.
This turned out to be the biggest mistake we ever made and has nearly cost us our company!!! TransCentral immediately mailed out notification to all of our customers advising them that the customer is now legally bound by that acknowledgement which they had just received and were no longer permitted to mail any payments to our trucking company. If they failed to comply, they could face a law suited in court.in other words, OUR CUSTOMERS COULD NO LONGER PAY US FOR THE WORK WE WERE DOING FOR THEM!!! If they did pay us by mistake, the customer would receive threatening letters from TransCentral that they could be suited in court for mailing our company the monies they owe us.instead, they must comply by mailing payments to TransCentral.
Furthermore, the representatives at TransCentral began using every excuse they could muster up NOT to send us our money within 48 hours. It took us about 30 days to realize that TransCentral had no intentions of providing us the service they initially promised. We notified them in writing that we no longer required their services; and, they sent us a bill for over $23,000.00. They claimed that, although we canceled their services, our contract was for one year. TransCentral claimed that they are entitled to and we are obligated to pay them for monies that they would have made from us over that one-year period. Additionally, until they are made whole, they will not release any of our customers back to us. Therefore, we cannot get paid from our own customers until we pay TransCentral over $23,000.00!!! TransCentral has collected over $70,000.00 of our money and they want $23,000.00 more. While our drivers panicked because they were not working, we had to immediately go out and find new customers or close our doors. We are now trying to fight them in court. However, this effort requires resources of time and money that we do not have. So do we give our money to TransCentral or to the attorney?
0 comments