How to Find Moving Company Scams

Moving scams have been on the rise since the 1980s, when the Household Goods Transportation Act was passed. Since then, there have been many different types of moving scams performed on the unsuspecting public. People who pack, load and drive their belongings to the new home are less susceptible to moving fraud than those who use the full service movers. The reason is that full service movers have a bargaining chip that never fails to squeeze the desired amount of money out of the customer. That chip is the customer's belongings. Fortunately, there are way to find moving company scams.

Difficulty: Moderately Easy

Instructions

1. Get the contract in writing. Many customers assume that the estimate agreed to over the phone is binding. However, it is very difficult and often impossible to successfully sue the moving company perpetrating this scam.

2. Review the estimates stated in the contract. All movers have three types of estimates that are used for a moving agreement. A binding not to be exceeded estimate sets a ceiling price that the mover cannot breach without breaking the contract. A fixed price agreement sets one price that the customer pays and the mover accepts, no matter what. A nonbinding estimate is one that can change as the mover chooses. Moving scams are often perpetrated using a nonbinding estimate because they can change the price at will without penalty.

3. Read the contract carefully before signing. Customers have been coerced into signing blank forms, especially if the move is rushed. If the company does not have time to accurately record the terms agreed upon, and allow you to read them before signing, then the company's intent is most likely fraudulent.

4. Be wary of the moving company that seems to be able to underbid any other company's estimate. Such a company is more likely to perform hostage moving, where the low estimate is given in the beginning and changes while the truck is in transit. The movers will refuse to unload the truck if the exorbitant new price isn't paid.

5. Ask for the full information on the company. A legitimate company will give you contact information on their parent company (if applicable), Department of Transportation (DOT) licensing information, its legal name and even insurance information. Fraudulent companies will balk at such disclosures.

6. Contact others who deal with the moving industry in the area on a regular basis. This includes realtors, landlords and even contractors. These people have contact with moving companies and can often tell you how they operate when the customer is not around to supervise the unloading.

Tips & Warnings

• * Contact the Better Business Bureau to see if the company has any past complaints filed against them.

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