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ISRI Time Capsule: When a Deal Wasn’t a Deal

In 1990, recyclers started receiving bills from trucking carriers for “undercharge claims”--the difference between a carrier’s official rates filed with the Interstate Commerce Commission and rates it negotiated with the shipper.

March15LUTimeCapsuleUnderchargeClaims250This problem persisted until Congress passed a bill in 1993 exempting scrap recyclers, small businesses, and charitable organizations from having to pay outstanding motor carrier undercharge claims. The problem resurfaced in 1997, however, when recyclers learned they were only entitled to pay the negotiated discounted rate if they paid their bill within the time specified in their contract.

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