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| The Basics | Don't get scammed by your mover
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In the virtually unregulated moving industry, swindlers can brazenly hold your goods hostage with little to fear. That's why choosing the right mover is crucial. Here's how.
By Liz Pulliam Weston
Galleons laden with gold were safer sailing through the pirate-infested waters of the Caribbean than todays consumers are when they move from one state to another.
The galleons had a slim hope that a government patrol would spot their distress and come to the rescue. Consumers, by contrast, are entirely on their own:- The interstate moving industry has been all but unregulated since 1995, when Congress got rid of the Interstate Commerce Commission.
- The Federal Motor Carrier Safety Administration (FMCSA), which is nominally responsible for interstate movers, focuses on reducing crashes. The agency has just three employees who monitor movers and cannot intervene on an individual consumers behalf.
- The FBI has investigated some complaints and last year busted 16 southern Florida movers in Operation Stow Biz. But the agency is among the first to admit that the arrests barely made a dent in this scam-infested industry.
- Complaints about movers have more than tripled in the past decade, according to the Council of Better Business Bureaus, with 9,405 lodged last year alone. Like all good pirates, moving industry swindlers have taken note of the lack of regulation and enforcement, exploiting it to their full advantage.
| Moving company complaints | | Year | Complaints | Year | Complaints | Year | Complaints | | 1995 | 2,868 | 1998 | 4,922 | 2001 | 6,872 | | 1996 | 2,970 | 1999 | 5,097 | 2002 | 9,116 | | 1997 | 3,736 | 2000 | 4,912 | 2003 | 9,405 |
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Source: Council of Better Business Bureaus
Your life held hostage
Typically, the con artists lull you with a lowball quote. Once your goods are on their trucks, they demand you pay two, three or even four times the agreed-upon amount. If you balk, your household goods are tossed into a warehouse somewhere to molder until you give in.
Tim Walker said his stuff was taken hostage by Americas Best Movers, a Florida company whose owner was eventually indicted in the FBI sting. Not only did Walkers bill balloon from $1,869 to $5,012 for a move from Virginia to Nevada, but his possessions -- which were supposed to arrive in a week -- took more than six to finally arrive. Once he unpacked, Walker found his furniture had been damaged and some valuable items, including power tools and a computer, had disappeared entirely.
Walker was so incensed by the experience he started a Web site, MovingScam.com, to educate consumers about the risks. Walker said hes learned he did everything wrong, starting with getting quotes over the Internet rather than through in-person estimates.
Scam artists thrive by buying referrals from Internet quote services, Walker contends, and in-person estimates are essential for getting a fair bid.
But even then, you could get scammed.
Not-so-binding price quote
Anne Backstrom thought she was being a careful consumer by getting in-person bids from three companies and a supposedly binding, not to exceed quote from the winning bidder when she and her family moved from Boston to Seattle four years ago.
A week later, I'm in Washington state waiting for my goods to arrive, Backstrom said, (and) I receive a call from the driver who states that he needs $2,100 more in order to give me my stuff.
The driver claimed the shipment weighed more than originally estimated and refused to honor the not to exceed quote.
He said if we didnt pay, our stuff would be put in storage and wed have to pay to get it out, Backstrom said. It literally was held hostage.
She finally had to borrow the money from her family to get her goods. Her complaints to the companys headquarters went unanswered.
For now, you're on your own
Since federal regulators are largely toothless -- and Congress is seemingly uninterested in giving them more authority or money to crack down on rogue movers -- any hope for improvement in the industry probably lies with state regulators.
Some, like Californias Public Utilities Commission, have been watchful advocates for residents moving within state lines, Walker said, but are barred from intervening in state-to-state moves.
A bill introduced by U.S. Rep. Tom Petri, R-Wis., last year would take away that barrier, giving state consumer protection agencies the power to take legal action against interstate movers. Unfortunately, the bills going nowhere.
So that leaves you back where you started: on your own. Youll want to be incredibly thorough in your footwork before hiring an interstate mover, since everything you own is at risk and your only recourse after the fact is to sue.
Beat the pirates
Here are some suggestions to help you reduce the risk of getting scammed:
A well-known name is no guarantee. Don't assume you're safe if you use a nationally known company. Readers have reported being stung by drivers working for even the best-known movers.
Get real referrals. Forget Internet quote services; you want to hear from real people you know and can trust. Has any of your friends recently been involved in an interstate move? (Recent is important, as youll see below.) Does your employer regularly relocate workers across state lines and have a list of reputable movers? If not, can you call the nearest large company and find out which companies its human resources department uses for moves? Walker also suggests checking with local real estate agents for referrals and limiting your search to local companies that have been in business at least 10 years.
Collect the right information. Youll want the companys name and any aliases it might operate under, along with an address, phone number and its Department of Transportation and MC, or motor carrier, license numbers. Also ask for the owners name and how long the company has been in business under that owner. Also ask for three references from people whove used the company to move in the last few months -- and call those references.
Get in-person, weight-based estimates. Movers cant give accurate estimates over the phone, and bids based on cubic feet rather than weight are more likely to be inaccurate, Walker said. If a mover wont come to your house, strike it off your list.
Visit them. A personal visit can help you spot numerous red flags, such as trucks that arent permanently marked with the companys name or an outfit thats operating under multiple aliases. The condition of the companys offices and warehouse can be revealing, too: If the operation is dirty or disorganized or it looks like they just moved in, beware.
Check them out online. Some states, like Florida, make business background checks relatively easy by putting most the relevant information online (usually under the secretary of state office). Others, like California, put some information online but make you wait weeks or months to be mailed detailed information, like the owners name. Find out what you can, and compare it to what you were told when you were collecting information from the company itself.
Then check with the Better Business Bureau to see the companys complaint history and check out its DOT number at the FMCSAs Safety and Fitness Electronic Records System (SAFER) Web site. Youll want to make sure the license actually belongs to the company, that its authorized for interstate household moves and that it has insurance. Consider dropping by Walkers site, as well, to make sure your prospective mover isnt on his blacklist of troublesome companies.
The American Movers and Storage Association touts its AMSA Certified Mover Program as a way to find an ethical mover. Its a good start, but remember that AMSA is a trade organization that represents its members, not a regulator that represents the public. A certification isnt a guarantee that you wont have any problems.
Past performance is no guarantee of future results. A moving business that hasnt been in operation long can be a red flag, since scam artists quickly shut down their operations and start over once complaints start to mount. Some, however, go so far as to buy small, reputable companies that they can run into the ground. Thats why you want referrals and recommendations from someone whos used the company recently.
Dont accept substitutes. If another companys truck shows up on moving day, dont let them touch your goods. Fire the mover and start looking for another one. Yes, this is a huge hassle, but youll face a bigger one if your goods are held hostage.
Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.
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