2 investigates of illegitimate moving companies cheating customers and discovered questionable tactics that are rampant in the industry, according to an industry expert. Customers who are under pressure to relocate quickly can easily be taken advantage of by illegitimate moving companies. Prosecutors say those firms' techniques can be very sophisticated, but there are easy ways to protect yourself.
High-Pressure Sales
"It's really hard to distinguish the scam companies from the legitimate ones," said Santa Clara
Lin says the first sign customers should watch out for is high-pressure sales techniques.
"One of the red flags of a scam operation they will use the pressure of time. They will say 'We understand you need to move quickly. We can give you a discount if you pay in cash. If you pay upfront then we can give you an even greater discount,'" said Lin. "So the pressure is to have it in cash when the protection for the consumer is to pay by credit card."
Sacramento resident Sandy Highland believes a moving company tried to take advantage of her.
"He was asking for my credit card information for the deposit he said if I didn't hurry up we might lose our spot," explained Highland.
Highland said the salesperson also kept raising the verbal estimate for her move. She says he then charged her credit card a hefty deposit before she signed a written estimate. Highland’s credit card company helped her get back the money.
"I told them I wouldn't let them move my neighbor's trash to the curb let alone my children to Tacoma or anywhere else," said Highland. "I didn't recommend them."
Questionable Tactics
Lin says he has seen a variety of tactics that questionable companies will use to dupe consumers into handing over their money. He showed 2 Investigates examples of companies cutting and pasting contracts from legitimate moving company websites, then passing them off to customers as their own. He says some firms will even buy old moving trucks from a legitimate business, but will leave the other company’s logo on the side.
"It is extremely difficult to prosecute these companies because they often change names," said Lin.
But there are also some common practices in the moving industry that are legal, according to Lin, but could leave customers confused and vulnerable.
"Nowadays in the industry there are such things as brokers. That's a legal kind of middleman that is supposedly offering services for several moving companies," said Lin.
Highland later found out the company that booked her move was brokering it out to another one without telling her, she says. When 2 Investigates called the number listed on Highland's estimate, another company answered. A visit to the company's web address, which was also listed on the estimate, instead linked to a page that was no longer active.
All interstate movers are assigned a Motor Carrier, or MC, number that consumers can use to verify certification through the U.S. Department of Transportation website. The one listed on Highland's estimate yielded no results in an online DOT search.
"A legitimate broker will tell the consumer that the broker is doing exactly that, brokering and is not the moving company itself," said Lin. "However, that is an area that is ripe for abuse really; for a broker to muddy the waters to not distinguish their services from the moving company services, when in fact they could be the front for the scam moving company."
2 Investigates is not revealing the moving company Highland used or the company it supposedly brokered her move out to because the DOT will not confirm whether or not the companies in question are currently under investigation.
An attorney for the company who offered Highland her original estimate sent 2 Investigates a statement that in part says, "It is not uncommon for brokers and carriers to work closely together."
Still, Highland says she never agreed to the manner in which her estimate was handled.
"They seriously misrepresented themselves and I thought I was a pretty smart person I didn't even know that that could even happen," she said.
Protect Your Move
Moves within California are regulated by the California Public Utilities Commission. Moves across state lines are regulated by the Department of Transportation Federal Motor Carrier Safety Administration. Lin says you should always check to make sure the moving company you are using is both licensed and insured.
Other strategies to protect yourself include asking and checking to see if the moving company is a carrier or broker. If the moving company is a broker, ask who it will be brokering out your move to and then research that moving company to make sure it is licensed and insured.
Lin says never get an estimate on the phone or online. Always request an in-person estimate. He also suggests getting three quotes from three different moving companies. And adds that most moving companies’ estimates should be within 10 percent of one another. He warns that low ball offers could be a scam.
Other industry experts suggest getting a binding estimate or one that gives a dollar amount that the move will not exceed.
Finally, be wary of extra packaging or wrapping that could inflate both the labor and bottom line cost of your move.
"Don't let them rush you, take your time and definitely don't get down to the wire of the move," says Highland.
Stimpson Movers is an East Boston Moving Company that can be trusted, they have been in business for over 110 years.
No comments:
Post a Comment