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Continued Risk of Truck Accidents Involving Reincarnated Companies
In spite of the fact that the Government Accountability Office has raised concerns about the widespread practice of reincarnation of trucking companies in the past, truck accident attorneys know that these practices continue unabated.
What’s worse, the federal administration lacks the resources to put a stop to the practice. In recent months, the Federal Motor Carrier Safety Administration has begun focusing on bus companies that have been reincarnated after being shut down. When a company is cited as being unsafe by the Federal Motor Carrier Safety Administration after inspections find deficiencies, the agency may decide to suspend the company’s license.
However, in some cases, these companies resume operations under a new identity. Similar practices are also followed by trucking companies that are shut down by the Federal Motor Carrier Safety Administration. However, the agency has chosen not to come down strongly on these companies, and such practices. According to a new report by the Government Accountability Office, the federal agency needs to commit more resources in order to track down companies that are operating under a new identity.
According to one study conducted by the Government Accountability Office in 2009, approximately 9% of all motor coach carriers were reincarnated, or resumed operations under a brand-new identity after they had been forced to shut down. Similar practices are also widespread in the trucking industry, and it is these practices that the Government Accountability Office is now very concerned about.
The Government Accountability Office developed a system to weed out such reincarnated carriers from the system. It found that out of the thousands of new motor carrier applicants in 2010, approximately 1,136 showed signs of being reincarnated carriers.
The Government Accountability Office is recommending that the current new entrant screening process at the Federal Motor Carrier Safety Administration be strengthened in order to detect if a company is now filing for a license under a new name and address. For this, the agency needs to dedicate more personnel who can make it their job to detect common addresses, phone numbers and company officers in filings. Such screenings would help to filter out companies that are trying to get back onto the road again under new name.
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