Moving Companies Using Loophole To Up Moving Costs

Posted by Relocation Specialist on September 26th, 2009 filed in Relocating

Postings on a prominent anti-moving scam website indicate that people fighting moving cost estimate are still not seeing the forest through the trees. Ask any one of them to describe the typical scam, and he will tell you as follows: The moving company offers a “low ball” estimate over the phone to entice the customer; Once the goods are loaded on the truck, he will raise the price; The moving company will then hold the goods hostage until the victim agrees to pay the increased price. Reading through this, you will assume that the injustice here is that the movers has gone back on their word when they raised the price. But in actuality, when this is occurring, moving companies may be using the protection of a tiny loophole in the moving regulations that allows them to get away with the price hiking

Movers can claim that their price hiking activities are legal because most of the online moving contracts are made between the customer and a moving broker. The broker may take an inventory of items to be moved, and might offer a binging or non-binding agreement with the consumer. And the house holder may accept the agreement and pay a deposit. But the truth is, that based on a tiny technicality described on the official website of the Federal Motor Carrier Safety Administration, no agreement may have been made at all. The website states:

“You should be aware that if you receive an estimate from a household goods broker, the mover may not be required to accept the estimate. Be sure to obtain a written estimate from the mover if a mover tells you orally that it will accept the broker’s estimate.”

Once the broker has closed the deal and received his deposit, he will subcontract the move to a moving company. On moving day, the movers will take control of the goods, and then see no need to honor any pre move agreement made by brokers. Even, if as noted above, they orally accented to honor the brokered agreement, that may amount to nothing in a court of law.

The moving regulations have actually created a catch 22 situation for consumers wishing to move safely. If they sign any papers on moving day, that will void the previous binding agreement. If, based on the above technicality, they fail to sign any papers, that might give Carte Blanc to the moving subcontractors to claim there is no agreement at all, and they have the right to make their own price.

The cutting edge challenge of the problem has to do with the obligation of movers to give some type of pre move estimate to the consumer. If they claim that they were not bound by the brokered agreement , then when did they give a premove estimate? The answer is that not enough cases have yet come to light to answer the question.
Thanks to Packing Service Inc. for sponsoring this report. Packing Service Inc. provides Florida and New York packing services and is currently opening branches in every state. They are dedicated to protecting consumers from movign scam.

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