Tips to Steer Clear of Moving Company Scams
Tell-Tale Signs of Mover Fraud
Moving to a new place is exciting, but be careful. You’ve probably heard horror stories about movers not showing up, charging more on moving day, or holding belongings hostage until payment is made. These scams can quickly turn your joy into a headache. Making a smooth move requires being alert and educated about how the industry works. Here’s what to know about moving company scams and how to dodge those scam artists.
Know Your Rights and Estimates
Before you hire any moving company, know the industry regulations so you can tell if they’re a legitimate company. Movers are required to provide a written estimate. The estimate must include all charges, including transportation, packing materials, and accessory fees.
It must be dated and include the liability coverage options for your shipment: Full Value Protection and Waiver of Full Value Protection.
Legitimate movers also clarify whether they are brokers or movers, a distinction that can impact the experience. Brokers hire third-party vendors to handle different parts of the move. You could have three different vendors shifting your stuff around. Moving companies handle all phases of the move themselves. Do your research to learn how the moving industry works.
Common Moving Scams
The “Low-Ball” Estimate
The mover sales representative will give you an over the phone estimate or do a quick glance around. This initial estimate will likely be way below other reputable moving companies as a way of encouraging you to sign their contract. Reputable movers ask detailed questions about all your belongings to prevent inaccurate estimates.
The Large Deposit
While standard practice is to sign a moving agreement and give a deposit, professional movers generally do not demand full amounts or large amounts upfront. Given that interstate moves can cost thousands of dollars, you do not want to lose these funds.
Extra Fees
Some unsuspecting customers are shocked to find there are extra fees for services like carrying boxes up stairs. Certain household goods like a treadmill or piano may have an extra fee. You can be charged extra if they have unpack and repack into a smaller truck to fit your street.
The Guaranteed Quote
Think you’re getting a rock-solid, “not to exceed” contract? Don’t forget to read the fine print. It often includes a catch: the price won’t go over a certain amount unless the weight of your belongings is more than estimated. To avoid surprises, make sure you get it in writing that the price you’re quoted is the final price—or at least feel confident in the weight estimate provided.
Keep in mind that different moving companies can give weight estimates that vary by thousands of pounds. In some cases, you might actually feel more secure going with the higher estimate. Movers calculate the weight by weighing their truck empty and then again with your belongings, so the estimate can make a big difference. So read the complete contract.
Hostage Shipment
After your belongings are loaded onto the moving truck, the company suddenly claims that the weight is higher than estimated or that unexpected services were needed. They then demand a much higher payment than what was originally agreed upon before they’ll release your items.
This can also happen in interstate moves where you place your goods in a storage facility for a period of time.
Holding your possessions hostage puts the customer in a tough spot, feeling trapped and pressured to pay the inflated amount just to get their belongings back. In some cases, the moving company might even threaten to sell or dispose of your items if you refuse to pay the extra fees.
It’s deceptive business practices like these that gives moving companies a bad rap.
Tips for Avoiding Moving Company Fraud
Verify Registration
Going across state lines? All interstate movers must be registered with the Federal Motor Carrier Safety Administration (FMCSA) and have a U.S. DOT number. Avoid fake credentials by confirming they are licensed movers, have the DOT number, and have company insurance.
Conduct a Physical Survey
Valid companies insist on visually inspecting your belongings to ensure accurate estimates. It’s a way to avoid overcharges. This can be done in person or through virtual home walk-throughs. Estimates given online or over the phone without seeing your inventory are red flags.
Research and Reviews
Do thorough research on moving companies to find trustworthy movers. Here’s how:
- Check the moving company’s Better Business Bureau (BBB) rating
- Verify their USDOT number on the FMCSA website
- Look for online reviews and testimonials on at least two different independent websites
- Ask for references and talk to past customers
Understand the Claims Process
Movers must have a claims process and participate in arbitration programs for disputes. Knowing this process can help you assert your rights if issues arise. During the quoting phase, ask the company what their process is. If they don’t have one, or if it’s simply “talk to your move coordinator,” that could be a concern.
Payment Type and Documentation
Be prepared with the correct payment type. Keep all receipts and supporting documentation for the move. Avoid movers that demand cash-only payments or large upfront payments.
A binding estimate means your move should be, at most, what the estimate says. However, if you add things to the move, they can still raise the price. A nonbinding estimate means the move’s cost can change and is often linked to truck weight. Know the difference when you sign. If your move is linked to weight, it increases the risk of additional payments or lowball estimates.
A common practice from moving brokers is to have you pay half the move cost as the deposit. Then, you’ll pay a quarter for pick-up and delivery. Moving companies may have a different policy on deposits.
Watch Out for Red Flags
Other indicators of fraud:
- Vague or unprofessional phone greetings
- Lack of a physical address or written estimates
- Showing up in rented trucks or vehicles
- If the original quote is significantly lower than other movers
- If they only do nonbinding estimates
- Being asked to sign a blank contract
- Requiring a full deposit upfront
- Too many negative reviews
These red flags hint at a potential scam at worst. At best, you may end up with unprofessional service that costs you more than money.
Protect Yourself When Moving
To further insulate yourself from the risk of moving scams:
- Shop Around: Don’t settle for the first moving company you come across. Get quotes and in-home estimates from at least three companies to compare services and prices. And don’t settle for the lowest quote. Movers have different terms of service. Among these are when they can deliver to your new home or their pick-up timeline.
- Document Everything: Keep a detailed record of all your interactions with the moving company. This includes emails, contracts, estimates, and receipts. Documentation can be your best defense if something goes awry.
- Inventory Your Belongings: Before moving, make a comprehensive inventory of your belongings. Don’t use the movers’ inventory list. Document the condition of your belongings with video and photos. This can prove invaluable if you must file a claim for damaged or missing items during the move.
- Read the Contract Carefully: When you receive the detailed contract from the moving company, take the time to read the fine print. What can be snuck in there if you don’t read is amazing. Understand every clause, with a particular focus on their policy on cancellations, delays, and what insurance covers. Pay attention to any section that discusses additional fees or charges. Clarify any terms or conditions you do not understand before signing to ensure. You won’t have any surprise charges or stipulations that impact your move.
- Don’t Be Pressured into Signing: It’s not uncommon for unscrupulous movers to urge you to sign documents quickly. They claim time sensitivity or a special discount for doing it now. Always remember that a legitimate moving company will allow you the time to review the contract. It’s your right to ask questions and consult others if necessary before agreeing to the terms. Only sign a document once you are confident that all your concerns have been addressed and you fully understand the agreement.
- Read the reviews: Look at Google Review, but also official complaints to the Better Business Bureau or the Federal Motor Carrier Safety Administration. These should show if the company has a track record of unprofessional behavior or unresolved complaints.
How to File a Complaint
Did you fall victim to a moving scam? If you find yourself in a situation where you need to file a complaint against a moving company, follow these steps:
- Gather Documentation: You’ll need all contracts, invoices, and communications with the company as evidence in your claim.
- Contact the Moving Company: Attempt to resolve the issue directly. Moving companies should have a coordinator you can reach at any time.
- File a Complaint with FMCSA: Use their hotline at 1-888-DOT-SAFT or use the online complaint form.
- Contact Your State Authorities: Refer to the FMCSA website for state law enforcement resources.
- Share Your Experience: Help others by leaving honest reviews online.
Avoid Moving Company Scams
Moving is stressful enough; don’t let a bad company experience make it even worse.
Stay sharp, and your move will go smoothly without frustrating scams. If something sounds way too good to be real, it likely is. Trust your gut, do a bit of digging, and never hesitate to ask questions. After all, keeping your peace of mind (and all your belongings) is worth it. With our comprehensive guide, you can ensure a scam-free move.