Auto Transport Company Went Out of Business — What to Do

Auto transport companies do go out of business — sometimes suddenly, and sometimes with your car already in transit or your deposit already paid. Here is exactly what to do depending on where you are in the process when it happens.

Scenario 1: You paid a deposit but pickup hasn't happened yet

This is the cleanest scenario. The company has your money but not your car.

1. File a credit card chargeback immediately. "Services not rendered" — this is the fastest and most reliable path to getting your deposit back. Most card issuers have a 60–120 day window to dispute charges; act quickly.
2. File a claim against the broker's surety bond. FMCSA requires all licensed brokers to hold a $75,000 surety bond. This bond exists specifically to compensate customers when a broker fails to perform. You can find the bonding company through the FMCSA's licensing database (li-public.fmcsa.dot.gov). Contact the bonding company and file a claim.
3. File a FMCSA complaint. Even if you recover your money through chargeback, file the complaint at fmcsa.dot.gov to create a formal record and potentially trigger investigation.
4. File in bankruptcy court as an unsecured creditor if the company has formally filed for bankruptcy. This is a longer process and often results in partial or no recovery, but it is part of the formal process.

Scenario 2: Your car is in transit when the broker goes under

This is more complicated but less catastrophic than it sounds. Your car is not with the broker — it is with the carrier (the trucking company). The broker and carrier are separate entities. The carrier still has your car and is still obligated to deliver it.

1. Get the carrier's contact information immediately. Check your Bill of Lading (BOL) from pickup — the carrier's name, MC number, and phone number should be on it. If you do not have this, check the FMCSA database or call the broker's number — they may still be reachable even if going out of business.
2. Contact the carrier directly and confirm your delivery. The carrier has an independent legal obligation to complete the shipment they were contracted for. Explain the situation and get a delivery confirmation in writing.
3. Be aware of payment complications. If you had not yet paid the carrier's portion of the transport fee, you may need to pay the carrier directly. Get a receipt and keep documentation of any such payments.
4. Document everything — your communications with the carrier, any payments made, and the condition of the vehicle at delivery.

Scenario 3: Your car has been delivered but the broker owes you money

Perhaps you overpaid, or there was a guaranteed refund that is now uncollectible:

• Credit card chargeback if the payment was recent
• Surety bond claim (see above)
• Small claims court against the company's principals if you have identifying information
• State Attorney General complaint for consumer fraud

The surety bond: your best protection

The $75,000 surety bond that FMCSA requires of all licensed brokers is specifically designed for this situation. Here is how to file a claim:

1. Look up the broker's FMCSA record at li-public.fmcsa.dot.gov
2. Find the listed bonding company
3. Contact the bonding company and request their claim process
4. Submit your claim with proof of payment and documentation of non-performance

Surety bond claims can take weeks to months to resolve and are paid out to all claimants proportionally if total claims exceed the bond amount. But it is a real avenue for recovery when a broker disappears.