Moving to a new home is an exciting chapter in anyone’s life, but it can also open the door to potential pitfalls, particularly moving scams. Thousands of individuals and families fall victim to fraudulent moving companies each year.
From hidden fees to theft of belongings, the impact of these scams can be financially and emotionally devastating. Let’s explore essential tips to avoid moving scams and what you should do if you fall victim to moving fraud.
What is considered a moving scam?
A moving scam refers to fraudulent or deceptive practices carried out by illegitimate or dishonest moving companies. These scams can take various forms and are often designed to exploit customers during the stressful and complicated process of moving.
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Most Common Moving Scams
The most common moving scams often involve deceptive practices that exploit customers during the relocation process. Here's a list of the most frequently moving scams to be aware of:
- Low-ball estimates: A moving company may provide an attractively low estimate to the potential mover, only to significantly increase the price later, often claiming that the initial estimate didn't cover the actual volume or weight of items.
- Hostage loads: After loading the belongings, the mover may refuse to deliver or unload them until the customer pays a much higher price than previously agreed upon.
- Rogue movers or fake companies: Scammers posing as legitimate moving companies, often without proper licensing or insurance, may take advantage of customers by providing substandard service, stealing belongings, or disappearing with the customer’s items.
- Insurance scams: The moving company might offer inadequate insurance coverage or misrepresent the terms of their insurance, leaving the customer with little to no protection against damage or loss of their belongings.
- Advance deposit fraud: Movers may ask for a large deposit before the move and then fail to show up, essentially stealing the deposit.
Tips to Avoid Moving Fraud
1. Do Research Beforehand
Dozens of resources are out there to learn about different companies. Start with your real estate agent who is sure to know some trusty movers. Also, ask friends who have used a moving company, or check reputable sources like the Better Business Bureau, Yelp, MovingScam or ProtectYourMove if you think you found an honest mover. Those resources will alert you of any outstanding complaints.
2. Shop Around
Don’t get one estimate and end your search for a mover. At least three estimates are necessary when considering a moving company. Get the movers to visit your house and look at what they’ll be moving. There’s no way they can give you an accurate estimate without knowing what they’re doing. Noticeably low estimates — when compared to the others you got — are probably too good to be true.
3. Have a Written Contract
A verbal estimate gets you nothing. Tell the movers you won’t go forward without a contract that outlines every detail and omits vague, hidden fees (e.g. “driver’s fee”). Contracts need to include:
- Payment options (never make a cash transaction)
- Name, contact info and address of the moving company
- Addresses everything is moving to and from
- Insurance policy
- Costs for weight, items’ condition, truck weight, gas and customs costs
- Dates for pickup and delivery
- Get a price in the contract that the movers agree not to exceed
4. Check Their Claims Policy
If the moving company breaks an ottoman or drops a box of plates, you need to know what happens next. Find out if the company has its own claims agent or uses a third party. You can prepare for any claims process by taking inventory of all your goods. A list and pictures of everything will take a while to put together, but make it worthwhile if you need to file a claim.
What To Do if Scammed By Moving Company
Being the victim of a moving scam can be a stressful and frustrating experience. If you find yourself in this situation, it's important to take immediate and appropriate actions.
Here's a guide on what to do if you get scammed by a moving company:
1. Document Everything
Take detailed notes of your interactions with the moving company. This includes emails, quotes, contracts, receipts, and any correspondence. If your belongings are damaged or missing, take photos as evidence. Also, if legal in your area, record any phone conversations with the moving company where they make admissions or provide information about the situation.
2. Contact the Moving Company
Reach out to the moving company directly. Sometimes issues can be a result of misunderstandings that can be resolved immediately. Make sure to clearly state your issues and the resolution you expect. Keep the communication professional and document the interaction.
3. Report the Scam
If you suspect criminal activity such as fraud or theft, make sure to report it to your state agency or file a complaint with the Better Business Bureau, they can often help mediate disputes with businesses. If it’s an interstate move, report the scam to the Federal Motor Carrier Safety Administration, which regulates interstate moving companies.
4. Seek Legal Advice
If the situation involves a significant amount of money or a severe breach of contract, it might be worthwhile to consult a lawyer specializing in consumer rights or transportation law. For smaller disputes, you may consider taking the moving company to small claims court.
Bottom Line
Falling victim to a moving scam can be a stressful experience, but by taking these steps, you can assert your rights and seek the resolution you deserve. Remember, prevention is key, so always thoroughly research any moving company before hiring them for your next move.
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