6 Tips to Avoid Moving Scams

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Every year, about 15 million American families move to a new home – and most do it during the summer, according to Mayflower Transit.

The logistics of relocating are stressful and hectic enough. But what makes moving worse is the number of hustlers posing as moving companies and preying on the uninformed. They can disappear with your stuff, or hold it ransom for much higher fees than contracted. It’s prevalent enough that the U.S. Department of Transportation has a website for moving fraud: ProtectYourMove.gov.

In the video below, Money Talks News founder Stacy Johnson explains some of the necessary steps to do just that. Check it out, then read on for more.

As Stacy said, there are protections in place to keep movers from overcharging. For interstate moves, they can’t legally demand more than 100 percent of a binding estimate or 110 percent of a nonbinding one. But crooks don’t care what the law says: That’s why they call them crooks. So it’s critical to avoid problems before they start by avoiding problem movers. Here’s how:

  1. Get referrals. Ask your friends, family, or real estate agent for reputable movers. Search engines are not the place to start; scammers may have a beautiful website but sinister motives.
  2. Research. Disreputable movers may name or brand themselves after reliable ones – make sure you don’t get names mixed up. Check the names against MovingScam.com and avoid any that are blacklisted. (They have recommendations and reviews too.) The DOT can also help you search interstate movers for complaints and to make sure they’re properly licensed and insured. Check out complaints filed with the Better Business Bureau.
  3. Ask for estimates. Get at least three in writing, and if one is significantly lower be suspicious. Also call out anyone offering an estimate without visiting your home: They should want to see the furniture. Weight is a significant factor in the price and movers have a strong incentive to give an accurate quote – as I mentioned above, they’re going to be stuck with any binding estimate they provide. Skip anyone who demands to be paid up front or requires a substantial deposit. The company that helped Stacy with his story, Two Men and a Truck, said they get a customer’s credit card info but don’t charge anything until the move is complete.
  4. Understand the contract. Everything should be spelled out, with no hidden charges. If you don’t understand or agree with a charge, ask questions and see if it can be waived. Likewise, if you expect an expense they don’t mention – equipment, pads or boxes, for example – ask why it isn’t listed separately. Ask about the claims process for damaged goods.
  5. Check your coverage. Speaking of damaged goods, make sure you understand the protection you have for your stuff. According to the DOT, movers automatically provide full-value protection, which requires the company to repair/replace damaged items or provide compensation. However, it doesn’t apply to any item whose value exceeds $100 per pound (i.e., jewelry, silverware, china, furs, antiques) unless you specifically list them on the shipping documents. Unless you decline it, this coverage is automatic. It’s not, however, free: You’ll be billed for it. There is free coverage but it can be inadequate. Released value coverage provides only 60 cents per pound per item. As the DOT puts it, “If your mover lost or damaged a 10-pound stereo component valued at $1,000, you would only receive $6.00 in compensation.”
  6. Watch for other warning signs. For interstate moves, your mover is required by law to provide a copy of “Your Rights and Responsibilities When You Move,” a red handbook published by the DOT’s Federal Motor Carrier Safety Administration. If they don’t offer a copy, ask why. Also be skeptical of unmarked trucks and cost estimates by size rather than weight and distance.

Most federal protections (and some of the advice above) applies only to interstate moves. If you’re only moving within a state, there may be different rules and resources. ProtectYourMove.gov has a list of moving resources by state, including links to relevant agencies like the state attorney general. Here are a few other helpful links:

And once you’re sure you’re avoiding the bad apples, read up on tips to save. Check out 7 Tips to Save At Least $1,000 on Your Next Move.

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  • http://pulse.yahoo.com/_QF4K2VWM7KZ2E5QSVMRXD4EBT4 Long Live the USA

    Brandon, you forgot to mention outright theft which happens a whole lot more than people think.  Just looking at the sheer size and number of objects in a household will give you a possibility of the losses.  And don’t forget you might not realize something is missing until several days, weeks or even months have gone by.