Transportation Factors are rapidly becoming aware of the risk Chameleon Carriers pose. Also known as Reincarnated Carriers and Successor Entities. As the DOT continues its crackdown these carriers will change the way Transportation Factors conduct business. Chameleon Carriers are a serious risk to the Factoring community for two basic reasons.
The first risk to Transportation Factors is that your prospective client may be a Chameleon Carrier to avoid a bad safety rating with the DOT. The DOT is making a serious push to find Chameleons and shut them down. So if your new client turns out to be a Reincarnated Carrier you run the risk of the government coming in and shutting down your new client.
But not all Reincarnated Carriers are reincarnated to avoid the DOT. The second risk is that your new client is a Chameleon Carrier to avoid a debt their previous company incurred under another Factor. With the creation of Chameleon Catcher Factors are now able to track their deadbeat carriers to their new MC and new Factor.
Let's say your new client is a Chameleon Carrier. With their previous company the Factor got a $60,000 damage claim offset by their debtor. The client owed this money back to their Factor. The client decided it was cheaper to activate a new MC and start Factoring with you.
Now that Chameleon Catcher has come into existence the old Factor can easily track this carrier to their new MC. Using the Successor Liability clause of the UCC code the old Factor can now collect their debt from the receivables of your new client, leaving you holding the bag for that debt.
To assist Factors with both these scenarios the Chameleon Catcher can act as both a due diligence tool as well as a skip tracing tool.
On the due diligence side you can enter an MC number and get a Google map display showing all previous MC's in the area of your prospective client. You can select how far into the past you want to look. Chameleon Catcher will also return you results based on similar names and phone numbers nationwide. This will show you if there are any MC numbers that may have a relationship with the MC number of your new client. If you find a match you can do a UCC search and see if another Factor still has an interest in the receivables of your prospective client.
On the skip tracing side Chameleon Catcher will monitor a MC and alert you of any new ones that pop up within a radius that you choose. In addition to doing radius, phone and name matching nationwide, Chameleon Catcher will also monitor all the VIN numbers and License Plates of your defaulting carrier. You can select what percentage of those same VIN's and Plates you want to see on a new MC for the system to generate an alert. As we become aware of the information we will match it to what we know about your defaulter and keep you posted of matches.
When you find the Chameleon entity you can do a UCC search and filing. After that use the Successor Liability Clause of the UCC code to collect your funds due.
Chameleon Catcher is free to FactorsNetwork members who participate in our CreditExchange program.
If you don't want to share your trade experience data for some reason contact us and we can work up a pricing model based on your needs.