Receivable Protection Program (RPP) FAQs

What is the Receivable Protection Program?

The Receivable Protection Program (RPP) guards your company from those IAM members in financial difficulty through the following features:

Unpaid Invoice Compensation: Your company can submit claims to IAM for compensation on any unpaid invoice stemming from a household goods shipment owed to it by another IAM Governing or Core Member. This is the last-resort mechanism by which your company can recover money lost due to another member declaring bankruptcy or ceasing to exist. IAM Governing or Core Members must file a claim for Unpaid Invoice Compensation no later than 120 days past the date of its issuance for the invoice to be potentially eligible for Unpaid Invoice Compensation. IAM has paid out $274,111.63 USD to compensate members for unpaid invoices since the start of the RPP.

Outstanding Invoice Intervention Process: Your company can request IAM intervention on any unpaid invoice or combination of unpaid invoices greater than $3,000.00 USD owed by another IAM member and at least 120 days old through the Outstanding Invoice Intervention Process. This is the intermediate step by which IAM Staff intervenes with the allegedly delinquent member and tries to facilitate repayment of the outstanding debt. Since inception in May of 2011, IAM has facilitated resolution on invoices amounting to $885,696.17 USD.

Alleged Debtor List: Your company will now receive the IAM Alleged Debtor List each month, 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.

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 Governing and Core Members, the Association can now afford to cover invoices that stem from household goods shipments for the U.S. Department of Defense, Department of State, and General Services Administration. 

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.

Are there any other benefits for my company through the RPP?

Yes. IAM operates the RPP Outstanding Invoice Intervention Process, which is the procedure by which IAM intervenes on outstanding invoice amounts owed between members. Since implementing this process in 2011, IAM has successfully resolved close to $900,000 USD in unpaid invoices between IAM Members.

How does this Outstanding Invoice Intervention Process work?

Under this process, IAM intervenes with the delinquent member (Alleged Debtor) if the debt exceeds $3,000 USD and is more than 120 days old. If, after three interventions, the debt remains outstanding, IAM will add the delinquent company to the IAM Alleged Debtor List.

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 Governing and Core Membership dues.

Under the Invoice Compensation component of the RPP, if my claim is approved, will IAM pay me the entire amount of the invoice that was not paid?

No, but this determination depends on a variety of factors. To protect the solvency of the RPP Reserve Fund, IAM must maintain certain 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.

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

As part of the Outstanding Invoice Intervention Process, 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 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.

Other trade associations like LACMA and FIDI operate similar programs to the RPP. If my claim 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 to determine what the expected payout from each program will be. If the cumulative payout from more than one of the organizations does not make up for the total amount of the loss.

My claim was not denied. Why am I not receiving a payout this year?

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

I have provided evidence that a company I submitted a claim against is out of business. Why haven’t I received my check yet?

Claim settlements are based on a maximum annual payables amount determined by the number of IAM Governing and Core Member companies participating (i.e. paying into the RPP) at the end of each fiscal year. All claims are reviewed prior to the beginning of each fiscal year, so no payments will be disbursed until after the start of the next fiscal year.

If I submit an Unpaid Invoice Compensation (UIC) claim against another IAM Member and their membership lapses, will my company be compensated by IAM if they go out of business?

Yes. As long as the UIC claim is submitted within the parameters described in the RPP Operating Rules and Regulations, it will be valid for compensation should the debtor go out of business, regardless of whether the debtor company is still an IAM Member. This is because the both the claimant and debtor will have both paid Membership dues for the year the invoices were claimed, and were both part of the RPP for that fiscal year.