- FFN has built up a Debt Guarantee Fund to cover members for non-disputed non paid invoices of a FFN member.
- The Debtor Protection Program is compulsory for all members.
- Funds are built up by the members on a yearly contribution base.
- $ 500,- per year per Head office and $ 250 per Branch office
- Head office takes full liability for Branch office. If the branch office is situated in the same country as the head office, no DPP should be paid for the branch office as the head office takes full responsibility.
- Contribution will be charged minimum 5 years to all members and afterwards financials will be evaluated. So for companies who have paid every year since the beginning, the DPP will be lowered to 100 usd in 2018 unless the funds are less than 2000 euro per member. We will need to install the dpp again if the funds are less than 2000 euro per member.
- Claims are limited to the amount in the Fund
- The maximum amount to be claimed per claiming member is 20.000 usd per defaulting FFN member.
- If different parties claim regarding the same defaulting member and the guarantee fund is not sufficient for the coverage, pro-rata to the outstanding payments will be made.
- Claims must be made within 150 days after shipping date.
- For each claim a settlement committee will be created made up of 3 board members and 2 non board members. The board member responsible for the Debt Guarantee Fund will chair this committee and decide about the 2 non-members
- The members involved in the dispute may not take part in the settlement committee.
- Lost profits can never be reimbursed. So maximum amount will be the net costs as per outlay. Invoices to be provided.
- The guarantee fund should not be used to solve disputes between members. It can only be used when a FFN member has gone bankrupt or is out of business.
- In case of non payment of outstanding (and defaulting member is not bankrupt nor out of business) the board and or settlement committee can decide to ask fellow members to block all payments to the defaulting member and to ask for triangle payments.
Copiright: 2017 – FFN Freight Forwarder Network.
Credits: Print Network