Check out this clip on moving scams and what to watch out for, from NBC’s Today Show:
You know moving season is coming up when Matt Lauer is telling you to be careful when shopping for a mover!
(Note on Matt Lauer’s arm: According to US Magazine, Matt flipped over the handlebars of his motorcycle when a deer ran out in to the street – just in case you were wondering…)
Part 2: Why is this Happening?
Part 3: The Role of the Internet
Part 3 of this series discusses the role the Internet has played in making the issue of Moving Scams and Rogue Movers so widespread and prevalent.
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Most people would agree that the Internet has made their lives better – but ask the same question to anybody in the moving industry, and you might get a different answer. Why? Because the Internet has played a key role in tarnishing the reputation of this industry over the past decade.
When the Internet became a mainstream part of business in the 90′s, it made sense for moving companies to get quote requests (estimates) from their customers through a website. Some websites went a step further and gathered moving companies and people together so a customer could go to one website and find many movers. The information age had come to the moving industry – yay!
Unfortunately, this also happened to coincide with a time when the moving industry was being deregulated (see Part 2 for more on this) and many companies were entering the market. Some of these companies were just inexperienced, but others were full-on scam companies (see Part 1 for more on this) that were ready to take advantage of loose regulations to dupe customers.
The Internet made it very easy for these questionable moving companies to get quotes and business from customers just by having a pretty (and sometimes not so pretty) website. It also began to change customers’ expectations in working with a moving company from a detailed, hands-on, direct contact approach to “instant quotes.”
So what’s the solution? Consumers should be aware of the issues when shopping for movers online, even if it is a reputable third-party website. Consumers should also be aware that getting an accurate moving estimate is never “instant” and takes good, direct communication with a mover, along with (in most cases) an in-home survey.
For information on other issues regarding finding a moving company on the internet, please see our articles on:
Internet Brokerages
Part 2: Why is this happening?
Part 3: The Role of the Internet
Part 2 of this series on moving scams & rogue movers covers a bit of history on the moving industry in order to shed some light on why scams and disreputable practices have become so prevalent.
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If you’ve ever taken a self-defense class, the first thing your former cop/karate-master/ex-hell’s angel biker instructor told you was to “be aware of your surroundings.” All images of dark alleys aside, this advice holds true when you are researching and hiring moving companies as well. By knowing a little background on the moving industry you’ll be an informed consumer ready and aware of your situation when moving.
A little history…
Back in the day (1935), moving companies were heavily regulated by the Interstate Commerce Commission, a federal regulatory agency. The ICC watched over the industry closely, regulating entry, areas serviced, routes taken, etc. Later, moving companies were given the special privilege to meet with each other and decide upon tariffs (prices) that they would charge for their services. In short, moving companies were heavily regulated in terms of who could be a moving company, what they could do, and how much they could charge.
In 1980, Jimmy Carter passed legislation that deregulated the industry. Carter’s legislation made it much easier to become a moving company, loosened regulations on what moving companies could do (like hauling goods on a return trip), and introduced price competition. The general idea was to make the industry more efficient and lower prices.
This in itself was not necessarily a problem. However, it did open the door for many new, inexperienced moving companies to enter, as well as create the incentive to attract business through quoting lower prices. But the ability to quote low prices and hold your furniture hostage for a fee doesn’t pay off unless the moving company can get away with it.
The Carmack Amendment, a federal statute, preempts state law and is what allows moving companies to get away with breaches of contract, deceptive practices, negligence, and even fraud. Therefore, consumers can’t utilize state laws related to loss or damage of goods when an issue occurs with their moving company. While industry associations and businesses have raised quality standards on moving companies to combat the issue, consumers are still left legally unprotected. Many advocates are pushing for better consumer protection through state laws, but for now, it seems like it is up to the consumer to “be aware of your surroundings.”
[via movingscam.com]
Continue to Part 3: The Role of the Internet
Part 1: What’s the Scam?
Part 2: Why is this Happening?
Part 3: The Role of the Internet
In this four part series, I’ll be covering the issues surrounding moving scams and rogue movers – everything from how the scam works, how it all started, what is being done, and most importantly, what you can do to avoid it.
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“Hi, my name is Rogue Mover – and I’m here to hold your furniture hostage.”
So what is a rogue mover, and how do they scam you? Typically, a rogue mover will get your business by giving you a low estimate – much lower than the competition – over the phone or through “lead-generating” websites on the internet. Once they show up and pack your things in to their truck, they will demand a ridiculous payment (in some cases, many times that of the estimate) to have your possessions unloaded at your destination, threatening to keep your things until the payment is made.
There are many variations and unfortunate add-ons here as well. Some companies will take an upfront “brokerage” fee or deposit. Others will hold your possessions hostage, put them in to storage, and charge you to have your items delivered as well as for the storage you never asked for. To make matters worse, these companies will not be handling your possessions with care, so you can expect damaged items to be part of the story.
Check out www.movingscam.com for detailed information on scam movers. This site is dedicated to tracking down disreputable moving companies. You might have to comb through some forums to find information, but it’s worth it.
As the moving season kicks in every spring/summer, stories of consumers getting their furniture held hostage, getting scammed by an online brokerage or otherwise just having a nightmare move make their rounds in the newspapers, television, and online media. Avoid being a statistic and equip yourself with information on rogue movers and their disreputable practices.
Rogue Mover Red Flags:
How to Research Moving Companies:
(Check out movingscam.com’s article on How to Find a Reputable Moving Company for detailed instructions)
Continue to Part 2: Why is this Happening?
