Moving Scam
Encyclopedia
A moving scam is a scam by a moving company in which company provides an estimate, loads the goods, then states a much higher price to deliver the goods, effectively holding the goods hostage
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Once the rogue "moving company" has secured a move by providing a non-binding or binding estimate, they arrive to pack and deliver the goods. Often the scam movers use deceptive pricing or weight measurements including prices based on the gross weight of the moving vehicle. After packing and loading, the client is informed that their goods went over the expected weight estimate and the additional weight will be charged at a substantially higher rate (often double the original price per pound). Rogue movers will not inform a client of these discrepancies until the client's goods have been weighed at a certifiable scale, far from the client's original pickup location. The new price may be four or five times higher than the original estimate. The scam movers know that most people will be forced to pay these exorbitant rates based on their need for the personal effects.
(FMCSA), part of the U.S. Department of Transportation. Only a small staff (fewer than 20 people) is available to patrol hundreds of moving companies, making enforcement difficult.
Hostage
A hostage is a person or entity which is held by a captor. The original definition meant that this was handed over by one of two belligerent parties to the other or seized as security for the carrying out of an agreement, or as a preventive measure against certain acts of war...
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History
The moving industry in the United States was deregulated with the Household Goods Transportation Act of 1980. This act allowed interstate movers to issue binding or fixed estimates for the first time. Doing so opened the door to hundreds of new moving companies to enter the industry. This led to an increase in competition and soon movers were no longer competing on services but on price. As competition drove prices lower and decreased what were already slim profit margins, "rogue" movers began hijacking personal property as part of a new scam.Scam
There are many versions to the moving scam but the basic scam takes place as follows. A prospective client contacts a moving company and requests a cost estimate. In today's market this often happens online via moving directories or brokers, or phone calls. These moving brokers are salesmen prone to quoting sometimes low, but usually reasonable prices with no room for the movers to provide a quality service.Once the rogue "moving company" has secured a move by providing a non-binding or binding estimate, they arrive to pack and deliver the goods. Often the scam movers use deceptive pricing or weight measurements including prices based on the gross weight of the moving vehicle. After packing and loading, the client is informed that their goods went over the expected weight estimate and the additional weight will be charged at a substantially higher rate (often double the original price per pound). Rogue movers will not inform a client of these discrepancies until the client's goods have been weighed at a certifiable scale, far from the client's original pickup location. The new price may be four or five times higher than the original estimate. The scam movers know that most people will be forced to pay these exorbitant rates based on their need for the personal effects.
Regulation
The interstate moving industry in America is regulated by the Federal Motor Carrier Safety AdministrationFederal Motor Carrier Safety Administration
The Federal Motor Carrier Safety Administration , established January 1, 2000, regulates the trucking industry in the United States. FMCSA is headquartered in Washington, DC and employs more than 1,000 people in all 50 States and the District of Columbia...
(FMCSA), part of the U.S. Department of Transportation. Only a small staff (fewer than 20 people) is available to patrol hundreds of moving companies, making enforcement difficult.
See also
- American Moving & Storage AssociationAmerican Moving & Storage AssociationThe American Moving & Storage Association is the non-profit trade association representing members of the professional moving industry based primarily in the United States...
- List of national and international moving associations
External links
- Protect Your Move - a US government Web site on interstate moving regulations
- American Moving & Storage Association - provides consumer guidance when hiring a professional mover
- Movingscam.com A consumer/professional assistance site for people planning on a move
- MoveRescue Assistance site for people being scammed by a mover