How To Avoid Home Moving Company Fraud

A recent sting operation in New Jersey made news because it exposes how easy it is to fall victim to moving company fraud. Reported by WABC "7 On Your Side" consumer advocate Nina Pineda, 26 unlicensed moving companies were found to be violating state laws during "Operations Mother's Attic"—these unlicensed and uninsured operators had been advertising on Craigslist and other websites as movers.

How can you protect yourself when moving? The best way is to know your rights and your options when picking a company to help you move. If you are moving from one state to another (an interstate move), the Federal Motor Carrier Safety Administration regulations protect you from mover fraud and clearly define what your responsibilities and rights are and what responsibilities your movers have. If you are moving within your state, your state may have similar laws that protect you.

For an interstate move, here are some important things to know so you don’t end up a victim of moving fraud:

• Use only a mover or broker who is registered with the Federal Motor Carrier Safety Administration (FMCSA). You can find out if your prospective mover or broker is FMCSA registered at www.protectyourmove.gov or by calling 202-366-9805.
• Check to make sure there isn’t a record of complaints against your prospective mover or broker. Again, you can do this through www.protectyourmove.gov.
• If a mover doesn’t show US DOT numbers or a broker doesn’t show Motor Carrier (MC) numbers in their ads, be suspicious and avoid using them. You can find out if your prospective mover is licensed by calling 202-385-2423.
• Before you move, read both “Your Rights and Responsibilities When You Move” and “Read to Move”. You can find them on www.protectyourmove.gov. Your mover or broker is also required to give you this information.
• Movers are required to give you a written estimate. If a broker gives an estimate, he is required to do so in writing.
• Never sign documents that are either blank or incomplete.
• Be certain that you understand how much liability coverage you are agreeing to. This is a stumbling block for many people. Be sure to ask yourself how much it would cost you to replace all of your household items if something happened. Basic coverage is 60 cents per pound—that means you'd get only $6 for your 10-pound microwave. That won't cover replacing it. Make sure to ask about different levels of insurance coverage; you may want the protection that reimburses you with the amount you'd need if you had to go out and replace everything.
• If at all possible, be there to supervise the movers while they are loading and unloading your household items on and off the truck. If you can’t do it, ask someone you trust to represent you. Use the itemized list from your estimate to check off every box and piece of furniture. For more on protecting your items read our FAQ: Can we really trust a moving company to pack and ship all our valuables in a relocation?

For more information read part two of our three part series on Moving Company Fraud: Consumer Protection: Moving Company Fraud Red Flags