The Payment Protection Plan is designated to allow financial support toward loss of freight payments incurred due to an insolvent or bankrupt member.
Starting March, 2017 all new members are asked to participate in the PCA Payment Protection Plan.
PCA Members who have joined prior to March, 2017 will have an option not to participate, however, each member is strongly encouraged to participate.
The PCA Payment Protection Plan yearly contribution schedule:
1st year: USD $500.00
Subsequent years: USD 250.00
Per member/per participating office will be paid into a separate “Trust Fund” for the sole purpose toward supporting the loss of freight payments incurred by a participating member due to an insolvent/bankrupt member.
The PCA Payment Protection Plan only covers financial support toward loss of billed freight charges.
Other charges such as Duties & Taxes or COD collections are not covered.
Furthermore, the PCA Payment Protection Plan does not cover disputed invoices as those shall be referred to the PCA Dispute Resolution Service desk.
All participating Members are clearly identified by the PCA Orange Shield symbol in the member directory.
The PCA Payment Protection Plan may pay out a maximum of 80 % of the available money in the Trust Fund every 1st Quarter of each year, in settlement to protected members with freight debts outstanding from Insolvent or Bankrupt members during the past year with a maximum amount of 20,000 USD per debtor.
The PCA Payment Protection Plan will be managed by a PCA Trust Advisory Board from within the participating PCA Member Group.
The PCA Payment Protection Plan will employ the services of a professional collection agency to pursue debt collection from the debtor to recover loss of paid out funds thru legal means.
The annual contribution to the Protection Plan and maximum aggregate amount are subject to change.
Important : Non participating members cannot access the Payment Protection Plan.