Receivable Protection Program

What is the RPP?

The Receivable Protection Program (RPP) is a major benefit available to ALL IAM members that helps safeguard members from financial losses due to unpaid invoices, saving members losses in the amount of $6.5 Million since its inception in 2015.

Three Essential Things to Know About the RPP

Compensation: Protection if a delinquent company goes out of business

Invoices reported to IAM within 120 days of the invoice date may be eligible for RPP compensation, offering protection of up to $20,000 USD per creditor.

Formal Intervention: If unpaid invoices are not resolved in the IIRS, IAM can continue the intervention process for debts over $3,000 USD.

Note: For ITMC creditors, there is no monetary threshold for formal intervention.

Enforcement: IAM can impose consequences if debts remain unresolved, including:

Alleged Debtor List Publication: This list details IAM members who are allegedly delinquent on payments owed to other IAM members.
Repeat Violators Publication: Any IAM member company that has been reported five or more times to the IAM Issue Resolution System by at least five distinct IAM member companies within a rolling three-month period.
Expulsion: Any IAM member company may request the expulsion of another IAM member company for failure to settle debts if the amount due exceeds $10,000 USD.

How does it Work?

All unpaid invoices between IAM members should be reported through the IAM Issue Resolution System (IIRS). If requested, IAM will initiate the first stage of intervention. If the debt remains unresolved after this initial intervention, the RPP can offer further support through continued formal intervention and, if applicable, RPP compensation in cases where a delinquent member company files for bankruptcy or becomes non-operational.

Once the initial 30-day self-resolution period in the IIRS has expired and if the unpaid invoice(s) remain unresolved, IAM staff will guide you through the RPP process. Staff will assess whether the reported debt qualifies for Formal Intervention and evaluate which submitted invoices may be eligible for RPP Compensation should the delinquent company become non-operational. Please note that additional documentation may be requested to facilitate a smooth and efficient process.

What is RPP Formal Intervention?

IAM Members may request IAM Staff intervention on any invoice(s) greater than USD $3,000 owed by another IAM member following the unsuccessful conclusion of the IAM Issue Resolution System process.

In situations where an IAM Member is in debt to another Member who holds the IAM Trusted Moving Company (ITMC) designation, IAM Staff may intervene on behalf of the company who holds the ITMC designation if the debt is less than $3,000 USD.

However, only debts greater than USD $3,000 shall be posted to the Alleged Debtors List. By default, IAM treats each reported invoice in a confidential manner and will only initiate the intervention process if the filed by party has requested that IAM intervene.

What is RPP Compensation?

IAM will compensate members if they are owed money by another IAM member who has filed for bankruptcy or is no longer operating. To qualify, invoices must be reported to IAM within 120 days of the invoice date.

IAM reviews eligible unpaid invoices before the new fiscal year, and payments are made after January 1 of the following year.

The compensation process starts once IAM confirms that the delinquent company is financially insolvent, bankrupt, or no longer operating. Members must submit the required documents, as described in the RPP Operating Rules , for the review process to begin.

Compensation amounts are based on a maximum yearly limit, which depends on the total number of IAM members at the end of the fiscal year. These limits help keep the RPP Reserve Fund stable. More details about compensation limits are available in Section II.A of the RPP Operating Rules.

Please notify rpp@iamovers.org if you suspect that an IAM member has become non-operational or has filed for bankruptcy.

What is the Value of the RPP?

When accounting for both RPP Compensation and RPP Intervention, the program delivers more value back to IAM Members than they pay into the RPP Reserve Fund.

Since the inception of the program, it has delivered over $6.5 million USD in value back to the members. As demonstrated in the chart below, RPP has recovered $4,661,753 over a recent five-year span.

IAM has broken down recent RPP performance on an annual basis to demonstrate the value and how it is increasing year over year. The chart below highlights that the RPP has delivered at least $350 USD per member per year in direct value since 2019.

This calculation does not consider the significant value of the business intelligence we provide through the Alleged Debtor List. As a result, the actual value of the RPP is undoubtedly greater than what is reflected here.

The chart highlights the year-over-year value that IAM anticipates the RPP will continue delivering based on historical data. It is important for members to remember that this valuable benefit is included in their membership each year. If your company works with annon-IAM member, ask yourself why it is missing out on the valuable coverage afforded to movers through the RPP.

RPP FAQs

1. Alleged Debtor List

The Alleged Debtors list is posted in the Company Alerts & Alleged Debtors as well as in the IAMX Online directory which details the IAM members who are allegedly delinquent on payments owed to other IAM members. This tool provides members with advance business information regarding which members may not be paying their invoices. Filed claims for less $3000.00 USD are not eligible for posting on the Alleged Debtor List.

2. My company is owed money by a fellow Member who is an important client of ours. Can we file the unpaid invoice(s) confidentially?

YES! IAM treats all disputes confidentially and will not initiate the Intervention process with the delinquent company unless your company explicitly authorizes us to do so. The last thing IAM Staff wants to do is jeopardize your company’s business relationship.

3. What if I submit an unpaid invoice(s) that is less than $3000.00 USD?

IAM can assist with an intervention on all outstanding debts regardless of the amount owed or age of the invoice. If requested, IAM will conduct and initial intervention via the IAM Issue Resolution System with a 30 day self-resolution period.

If the debt remains unresolved after the completion of the self resolution period, IAM will keep it on file if the amount due is under $3,000.00 USD. If the debt is over $3,000.00 USD or if the filed by party is an IAMTrusted Moving Company, IAM will proceed with a formal RPP intervention.

4. What is the number one tip IAM gives to companies about the RPP?

Report within 120 days of the invoice date! If we do not know about an outstanding debt, we cannot assist.

You can choose to report and request that IAM does not intervene and keeps the debt confidential. However, if you do not report within that 120-day window, you will not be protected in case the delinquent party becomes non-operational or declares bankruptcy.

5. Under RPP Compensation, if my unpaid invoice(s) is approved, will IAM pay me the entire amount of the invoice that was not paid?

Yes, but this determination depends on a variety of factors. To protect the solvency of the RPP Reserve Fund, IAM maintains limitations governing the total amount paid out per year, the total amount paid out to compensate claimants of one particular company, and the total amount paid out to compensate a specific claimant. More information on these limitations can be found in the RPP Operating Rules and Regulations in Section II, Part A.

6. Other trade associations like LACMA and FIDI operate similar programs to the RPP. If my unpaid invoice(s) is valid in all three programs, can I still recover money from the RPP?

IAM’s policy on this subject is to work with FIDI and LACMA on overlapping compensation. The three organizations have worked out a process through which we can share these types of debts to ensure that we are maximizing the amount we can compensate under the rules of the program while sharing the costs from our mutual members.

7. My unpaid invoice(s) was not denied. Why am I not receiving a payout this year?

Even if your unpaid invoice was not denied, IAM only pays out RPP Compensation when it has determined that the debtor company has filed for bankruptcy or ceased to exist. If the debtor company you reported against is still operating by the end of the fiscal year, the reported debt will be rolled over to the next fiscal year and will be evaluated as a part of the following fiscal year’s review.

8. Why does IAM ask for additional documentation for eligible RPP compensation unpaid invoice(s)?

The RPP Operating Rules explicitly list the required documentation that the Filed By Party must submit for a potentially eligible compensation. These documents are used to verify that a service was actually completed and that the charges billed match the original accepted quote. All RPP compensation is independently verified for eligibility and this back-up documentation is required for that confirmation as well.

9. I have provided evidence that a company I submitted an unpaid invoice(s) against is out of business. Why haven’t I received my check yet?

Settlements are based on a maximum annual payables amount determined by the number of IAM Member companies paying into the RPP at the end of each fiscal year. All eligible RPP compensations are reviewed at the end of each fiscal year and no payments will be disbursed until after the start of the next fiscal year.

13. This used to be true. However, now that IAM has extended the program to ALL IAM Members, the Association can now afford to cover invoices that stem from both commercial household goods shipments and for the U.S. Department of Defense, Department of State, and General Services Administration.

10. I heard that the RPP only covers invoices that stem from commercial household goods shipments (i.e. non-U.S. Military / Government Shipments). Is this true?

This used to be true. However, now that IAM has extended the program to ALL IAM Members, the Association can now afford to cover invoices that stem from both commercial household goods shipments and for the U.S. Department of Defense, Department of State, and General Services Administration.

11. The RPP now covers invoices from U.S. Military and Government shipments? Is that right?

Yes, by expanding the RPP, IAM can now spread risk among approximately 2,000 companies rather 100 to 200 companies. In the past, failing to cover these invoices was a chief complaint of the RPP, so IAM wanted to incorporate this feature to make the program even more valuable to members.

12. So my company will be able to obtain compensation for unpaid invoices, request IAM intervention on outstanding invoices, and receive advance information about which IAM Members are allegedly not paying their invoices?

Yes, your company will receive all three benefits as part of its IAM Membership dues.

13. This Alleged Debtor List – How does a company get designated as an Alleged Debtor?

As part of RPP Intervention, IAM Staff conducts a step-by-step procedure by which a company will be identified as an Alleged Debtor if no effort is made to resolve the outstanding debt. Ample time is provided to the alleged debtor to pay off the outstanding invoice or propose an acceptable payment plan before being placed on that list. Additionally, IAM staff will work with the debtor company to follow up on debts that they may be waiting for from other IAM members.