Industry Protocol for Financial Integrity and Compliance – Purpose and Commitment

Transport Financial Services, LLC (TFS) is committed to upholding the highest standards of honesty, accountability, and financial integrity across the transportation industry. The Zero Claim Policy is a binding protocol designed to protect the most vital asset in logistics: the motor carrier. This policy ensures that all parties-carriers, brokers, and shippers—operate under enforceable load agreements and shared responsibility, with no room for ambiguity or misconduct.

Core Principles

• TFS enforces a literal zero-tolerance approach to fraudulent, unsupported, or misdirected claims.
• Shared Responsibility: All stakeholders-carriers, brokers, and shippers -are equally accountable for honoring contractual obligations.
• Motor Carrier Protection: The policy prioritizes the financial and operational protection of motor carriers, the backbone of the freight industry.

Policy Enforcement

• FMCSA & DOT Compliance: All parties must adhere to Federal Motor Carrier Safety Administration (FMCSA) and Department of Transportation  (DOT) regulations verification is mandatory and non-negotiable.
• Claim Adjudication: Disputes are reconciled by the TFS Claim Adjudication Team along with an outside authority operating under strict industry standards and ethical review.
• Online Claim Processing: All claims for non-payment must be submitted through the official TFS Claim Ticket System at www.support.TFSmall.com. No other method of submission will be accepted.

Non-Negotiable Terms

• Zero Claims Tolerance is absolute. This policy is not subject to negotiation or exception.
• Fraudulent or Unsupported Claims will result in:
•  Immediate cancellation of agreements
• Reporting to FMCSA and DOT
• Potential legal action and industry blacklist

Business Ethics Framework

• TFS operates under a strict code of ethics that includes:
• Transparency: Full disclosure of terms, responsibilities, and payment obligations
• Efficiency: Streamlined processes for dispute resolution and claim adjudication
• Compliance: Adherence to all federal and industry regulations
• Professionalism: Respectful, timely, and ethical conduct I all business interactions

Industry Impact

The Zero Claim Tolerance Policy is designed to keep honest people honest, foster trust, and eliminate financial abuse within the transportation ecosystem. By enforcing zero tolerance TFS

Ensures that only verified, legitimate claims are processed, and that all parties are held to the same high standard of conduct.

What does the BMC-85 cover in a nutshell:

• Protection for Carriers and Shippers: If a broker fails to pay a motor carrier or shipper for services rendered, the BMC-85 trust can be used to satisfy those valid claims.
• Compliance with FMCSA Rules: Filing a BMC-85 shows the FMCSA that the broker meets the financial security requirement under 49 U.S.C. § 13906. Without this filing (or a BMC-84 surety bond), a broker cannot legally operate.

What can be constituted as a claim and how the process works:

TFS does not accept liability for claims arising from freight loss, damage, or to negotiate non-payment disputes between carriers, brokers, shippers, or consignees. Our role is to provide financial services, compliance support, and operational guidance—not to serve as an insurer, guarantor, or party to transport-related transactions. Clients (carriers, brokers, or shippers) are solely responsible for verifying their business partners, contracts, and load agreements.

• All invoices, bills of lading, and related documents must be accurate, truthful, and submitted according to FMCSA and DOT regulations.

• TFS will provide compliance and support services but cannot intervene as a financial guarantor in disputes.

What It Does Not Cover

• It does not protect the broker themselves; it protects carriers and shippers against broker non-payment.

• It does not cover freight loss or damage—that falls under cargo insurance or shipper/carrier liability.

• It is not a flexible fund for the broker’s use—it is strictly reserved for claims.

Disputes on Freight Loss or Damage

A carrier cannot submit a claim if a broker refuses to pay the carrier while there is an ongoing dispute on freight loss or damage specifically when there are statements in the original broker contract that says payment will be withheld in these instances. The carrier can only submit a claim once there has been a resolution to the dispute (either through an agreement, mediation or legal proceedings).  If the resolution includes that the broker should pay but still refuses to submit payment the claimant can then submit a claim with all relevant documents.  All claims that are premature will be automatically de denied.