According to the U.S. Census Bureau, nearly 37 million people in the U.S. move into a new residence every year. The great majority of these people won’t run into any problems, but those that do may lose thousands of dollars or priceless belongings that can’t be replaced.
A 2010 report by the Federal Motor Carrier Safety Administration (FMCSA) stated that of the 1.6 million interstate moves that year, about 3,000 ended in a consumer complaint. That same year, the Better Business Bureau (BBB) received approximately 8,900 complaints against moving companies. There may be some discrepancy in the exact numbers, but every regulatory agency in the industry agrees that moving scams are real, and they are a problem.
How the moving industry changed in the 80s
In 1980, President Jimmy Carter signed into law the Household Goods Transportation Act. The intended purpose of the law was to loosen up federal price regulations in the relocation industry, allowing moving companies to offer more competitive rates. Before the act was signed, it was illegal for relocation services to guarantee moving costs, leaving a lot of uncertainty for consumers. Estimates were often way off the mark, meaning every move was a gamble for the homeowner. The act sought to eliminate this by granting relocation services greater latitude in offering binding estimates.
The Household Good Transportation Act also provided several layers of consumer protection not present before 1980. “Weight bumping,” or the unsolicited addition of workers or equipment to increase the cost of the move, was a frequent occurrence then. Weight bumping is now illegal. Also, before the act was signed, consumers could only buy a small amount of liability protection for their items. The industry now allows homeowners to opt for complete coverage of their goods, so a liability gap won’t put irreplaceable belongings at risk.
Thirty-three years after its institution, though, it’s becoming clear that the deregulation found in the Household Goods Transportation Act can cut both ways.
Anatomy of a moving scam
In the years following the enforcement of the act, hundreds of relocation companies joined the industry, seeking to earn market share by offering ultralow estimates. While many companies offering low rates are able to do so because they are more efficient or more popular, some produce estimates that are nothing but smoke and mirrors. The most common moving scam starts with this lie.
The scam normally starts with a faulty estimate, which may be binding or nonbinding. This estimate is often provided through a moving broker, a third party that connects consumers and relocation services. On the day of the move, the truck arrives and workers with the company will begin loading everything. When everything is secured on the truck, the supervisor will attempt to gouge the consumer for more than the original estimate. The consumer is told that their belongings are either bigger or heavier than accounted for. The price per cubic foot or pound is often two or three times more than specified in the agreed upon estimate. The supervisor may provide additional excuses for this discrepancy. In some versions of the scam, the supervisor will tell the consumer that they need to weigh the truck at an official facility nearby. Once the homeowner allows the driver to leave with their belongings, they are at the mercy of the relocation company.
The second part of the scam is much more direct. The homeowner’s goods are locked away in a storage facility the consumer has no access to. Feeding on the consumer’s desperation to have their things back, the company will charge obscene fees and rates to complete the move. Threats to auction off the items or to withhold them indefinitely are typically made. The goal is to scare the consumer into paying thousands more than they expected to.
Even when the scam is complete, it may take weeks for the homeowner to get their belongings back. Items will almost always be damaged or misplaced in transit, also.
In short, it’s a homeowner’s worst nightmare
Knowledge is power
While this scam sounds like it comes right out of a bad action movie, it happens to a few thousand people in the U.S. every year. Fortunately, every consumer has the power to avoid it and find a company that will deal with them on the level.
When engaged in any business dealing, there is one rule a consumer should always follow:
Information is power. Gather as much of it as possible before making a final decision.
Homeowners may feel rude to ask the particulars about any moving company they’re considering, and less professional relocation services may consider it off-putting, but it is the only surefire way to avoid becoming a victim. Contact several relocation companies before settling on one to thin out the risk. Ask all of them to provide an in-home estimate. This is extremely important and, in fact, relocation companies within 100 miles of the home must provide an in-home estimate under law.
Visit each company’s office and note how established they are in the area. Verify that they have moving trucks in their possession with their branding permanently affixed. Scammers often rent a truck from another party just prior to a move and stick a magnetic decal on it or leave it unmarked. Prices will vary significantly from service to service, so inquire about any differences. A higher or lower estimate isn’t necessarily a red flag because some companies offer additional services that may not be immediately obvious.
While the representative is present, get as many company details as possible, including: the company’s address, their web site address, any e-mail addresses, their experience, any DBA (doing business as) names that the company uses, their phone number and any references. Most important, though, make sure to get the mover’s Department of Transportation (DoT) and Motor Carriers (MC) numbers.
Check behind the curtain
The Federal Motor Carriers Safety Administration (FMCSA) is responsible for keeping tabs on the hundreds of moving companies around the nation. The FMCSA only has a couple dozen inspectors available, so enforcing motor carrier regulations is an endless, overwhelming job. What this means is that consumers shouldn’t assume a business is operating legally or safely just because they have an office and a truck. This is where the DoT and MC numbers can provide that layer of security a consumer needs before making a choice.
Safersys is an online portal that the FMCSA uses to keep track of all legitimate moving companies in the nation. Using the service’s DoT number, a consumer can look up all of the fine details concerning the business. These details can paint a comprehensive picture of any company, and it will soon become clear which can be trusted and which cannot.
With the Safersys report, a consumer can do some fact checking. Here are some items of interest:
- Verify that the listed address and company name are identical to the information given by the company representative.
- The “Power Units” and “Drivers” fields will present a rough estimation of the size of the company. Some scammers like to present themselves as much larger than they actually are. If the representative claims that their business does 50 moves a month, they’re going to need more than a single truck.
- Interstate movers must have special certification to cross state boundaries. This certification can be verified in the “Carrier Operation” field. There should be a mark next to “Interstate.”
- The Safersys report outputs the company’s inspection history. If the business has been inspected much more than the average moving business (the national average should be listed on the report), then this is a bad sign. Also, if the service has been in operation for more than three years and hasn’t been inspected yet, stay away.
If everything checks out here, view the company’s insurance and licensing status at the bottom of the report. A motor carrier must keep a minimum of $750,000 liability coverage and cargo insurance through the FMCSA. If either one of these are not present, strike the business off the list immediately.
One last stop
Does the company get a passing grade? If everything looks okay, then the relocation service is probably good to go. However, the one thing that Safersys won’t flag is a company that is operating legally but still providing poor service. To sidestep this problem, contact the BBB and ask about a company’s complaint history. A satisfactory rating is a good start, but shouldn’t be taken without proper context.
Finally, a consumer should always trust their instincts. If the customer service department seems dismissive or disorganized, that’s probably because they don’t put a high priority on this aspect of the business. If a company isn’t willing to help its clients before a move, it will only get worse once they have everything loaded on the truck. If the workers are rough with a client’s belongings, they will likely be even rougher when they aren’t around the client. Moving is stressful, even when everything goes according to plan. Don’t let a careless or unscrupulous company add to the stress.
