Moving Company Frauds
Moving company fraud can be upsetting and costly, but you can take preventative measures to reduce your risks and guarantee you’re working with a reliable mover.
Protect Your Move: How to Identify and Avoid Moving Scams
Following these safety precautions and doing your research thoroughly will ensure a successful and safe relocation experience, which will significantly reduce your likelihood of falling victim to moving company fraud. In this guide, we’ll outline how to spot fraudulent moving companies and provide practical tips to ensure your move goes smoothly with a trustworthy mover.
Essential Tips to Avoid Moving Scams
1. Research the Moving Company Thoroughly
One of the most effective ways to avoid fraudulent moving companies is to do your research before hiring anyone. A few hours of research can save you from headaches down the road. Before hiring a moving company, conduct thorough research by checking the reviews, verify the company’s credentials, and ask for recommendations.
- Check Online Reviews: Look at online reviews on platforms like Google, Yelp, and the Better Business Bureau (BBB). Pay attention to both positive and negative feedback.
- Verify Credentials: Ensure the company is licensed and insured. For interstate moves, check their registration with the Federal Motor Carrier Safety Administration (FMCSA) and obtain their DOT number.
- Look for professional memberships: Reputable movers are often members of professional organizations like the American Moving and Storage Association (AMSA) or have a ProMover certification.
- Ask for Recommendations: Seek recommendations from friends, family, or local real estate agents who have had good experiences with movers.
2. Acquire Multiple Moving Estimates
Obtaining estimates from several moving companies can help you gauge the average price and avoid overpaying. Be cautious of any company that offers a significantly lower price than others. Low-ball estimates are often a red flag for hidden fees or poor service quality.
- In-Person / Virtual Estimates: Choose movers that offer in-home estimates rather than just quotes over the phone. This allows the company to assess your belongings and provide a more accurate estimate.
- Written Estimates: Always request written estimates that detail the costs, including any potential extra fees. Avoid companies that provide vague estimates.
3. Watch Out for Red Flags
Be vigilant for signs that a moving company may not be reputable, unlicensed, and not insured.
- No Physical Address: A legitimate moving company should have a physical address. Avoid companies that only operate online or provide a P.O. Box. You can always check their Google Business Profile to verify the location of the moving company.
- Unprofessional Behavior: If the movers are unprofessional, such as being late for appointments or lacking proper equipment, consider this a warning sign.
- Demanding Large Deposits: Reputable movers typically require a small deposit. Be wary of companies that demand full payment upfront.
4. Understand Your Rights and Responsibilities
Understanding your rights and responsibilities as a customer of moving companies is crucial for several reasons such as protection against fraud, clarity on services, claim process, financial awareness, and peace of mind.
- The Bill of Lading: This is a contract between you and the moving company. Ensure you read and understand it before signing.
- Liability Options: Know the liability options available. You can choose between full value protection or released value protection, which determines how much you’ll be compensated for lost or damaged items.
5. Beware of Large Upfront Deposits
Most reputable moving companies will not ask for large upfront deposits. In fact, many do not require any deposit at all, or if they do, it’s usually a small percentage of the total cost. Fraudulent movers, however, may ask for a large upfront payment and then disappear or fail to deliver on their promises.
- Take Your Time: Don’t rush into a decision. Take the time to evaluate your options and find a company that meets your needs.
- Communicate: If you have questions or concerns, don’t hesitate to reach out to the moving company for clarification.
- Avoid large deposits: If a company asks for more than 20% of the total moving cost upfront, it’s a red flag. Pay with a credit card if possible, as this provides additional protection against fraud.
6. Watch for Common Red Flags
Fraudulent moving companies often display certain red flags that you should be aware of. Being vigilant and recognizing these warning signs early can save you from falling victim to a scam.
- No company address or website: If a moving company doesn’t have a physical address or a professional website, it’s best to steer clear. You should be able to verify their location and find information easily online.
- Unmarked or rented trucks: Legitimate movers use branded trucks with their company logo. If your movers show up with an unmarked or rented truck, this could be a sign of a scam.
- No contract or incomplete paperwork: Always get a written contract outlining all services and costs. If the company avoids providing documentation or fails to mention essential details, it’s a red flag.
7. Avoid Movers Who Don’t Offer a Written Contract
Always insist on getting a detailed written contract before your move. The contract should clearly outline all services being provided, the cost, and the terms and conditions. Make sure it includes any fees for additional services like packing, unpacking, or storage.
- Read the fine print: Make sure you fully understand the terms, including liability coverage for lost or damaged items.
- Don’t sign a blank contract: If a company asks you to sign a blank or incomplete contract, refuse and walk away.
8. Get Everything in Writing
Keeping thorough records can protect you in case of disputes. Create a detailed inventory of your belongings, noting their condition before the move and keep all of your correspondence—including texts and emails—with the moving company so you have proof in case something goes wrong.
9. Verify Their Insurance and Liability Options
Laws requiring the provision of Released Value Protection and Full Value Protection are directed against legitimate movers.
- Released Value Protection: This is the most basic level of protection, where the mover is liable for no more than 60 cents per pound per item. It’s included at no additional cost but offers limited coverage.
- Full Value Protection: This option provides more comprehensive coverage, as the mover is liable for the replacement value of any lost or damaged items. It may cost extra but is worth it for higher-value items.
Verify that your possessions are covered during the relocation by the company’s insurance coverage, and find out how to file a claim in the event that something is damaged.
10. Use Trusted Moving Resources
There are several online resources that can help you find reputable moving companies and avoid scams. Use these trusted sources to research companies:
- FMCSA’s Protect Your Move website: The Federal Motor Carrier Safety Administration offers helpful tips and a mover search tool to verify a company’s licensing and registration.
- Better Business Bureau (BBB): The BBB allows you to check a company’s rating and see if there have been any complaints filed against them.
- Moving Scam Websites: Websites like MovingScam.com provide information on rogue movers and allow customers to report their experiences.
11. Avoid Last-Minute Moving Decisions
Fraudulent movers often prey on customers who need to move quickly. Although it’s not always possible to avoid last-minute moves, it’s advisable to begin organizing and researching your relocation well in advance. Rushing increases the likelihood that you may hire a rogue mover since you may overlook important warning signs.
12. Trust Your Instincts
If something feels off about a moving company, trust your gut. Whether it’s an unusually low estimate, pushy sales tactics, or incomplete information, don’t ignore any warning signs. There are plenty of reputable movers out there, so don’t settle for a company that makes you feel uneasy. If you suspect fraud or have encountered problems, make a complaint with the FMCSA or your state’s consumer protection office. Reporting suspicious conduct can help others avoid falling victim to frauds.
Summary
You can lower your chances of becoming a victim of moving business fraud by paying attention to these few simple procedures. The right moving company can make your transition smooth and hassle-free, allowing you to focus on settling into your new home. Always remember, due diligence is key—prioritize safety and reliability, and you’ll be well on your way to a successful move. Taking the time to verify your moving company’s legitimacy will give you peace of mind and make your moving day go much more smoothly.
