Posted on 06/19/2004 8:07:35 AM PDT by diane2134
The June 21st issue of PEOPLE magazine (the one with Reagan on the cover) spotlights horror stories where people were scammed by movers in hostage freight situations.
I’m a long-time volunteer on a consumer advocacy website called MovingScam that’s mentioned in the article. A college student who was scammed, Tim Walker, was so angry that he started the website two and a half years ago. He continues to operate it on a shoestring to try to inform consumers and work for good laws to protect people. The website is a nonprofit corporation. None of the volunteers on the site receive any compensation or have any connection with anyone in the moving industry. Tim maintains a blacklist of known scammers and there is a message board with search button where you can research companies you are interested in.
At www.movingscam.com we hear about the kind of situation mentioned in the PEOPLE article every day. People write in to tell us that movers who gave them lowball quotes tripled the price of the move once their goods were on the truck, delayed for six weeks or more in delivering their goods while giving phony excuses, and finally dropped off their things damaged, often apparently deliberately. Tables arrive with long scratches across the tops, furniture legs are broken off, TVs don’t work and have footprints on the screen. Worse, consumers report that they are abused and intimidated by these scam movers both during the move itself and in phone conversations during and after the ordeal.
The horrible thing is that nobody—not the police, not the FBI, no one—can do anything to help them. If the police are called in a hostage freight situation, they have to let the scammers drive away with the victims’ things. The reason is that for all practical purposes, there are no laws in this country to protect us against scammers. A law dating from a hundred years ago called the Carmack Amendment prevents people from suing moving companies for meaningful damages for fraud, negligence, and abuses like holding people’s things for ransom. Victims can take the companies to small claims court, but the cost of hiring an attorney (currently up to $400/hour) is higher that the amount that could possibly be recovered.
I say “possibly” because these scammers are very good at hiding their assets. They operate over the Internet, paying websites like www.123movers.com to funnel victims to them. Many use call forwarding and mail drops rather than renting space in real office buildings. When too many complaints surface, the companies simply apply for different license numbers from the U.S. Department of Transportation and the Federal Motor Carrier Safety Administration (it’s easy to do) and reopen for business under a different name.
There are only a couple of Government investigators assigned to investigate such abuses, and even the few moving company operators that are eventually prosecuted are simply fined, sometimes jailed very briefly, and then often deported. (Many of the principals of these companies—as well as their employees—are citizens of Israel.) This situation is traceable to deregulation of the moving industry in 1980 and 1995 that opened the floodgates to lowballing scammers. Reputable moving companies are suffering as well because they lose business to these scumballs and public perception of the entire industry is at an all-time low.
What can people do about it? First, visit MovingScam.com and read the article called “How to Find a Reputable Mover.” Next, if you’re moving and cost is a concern, consider using a U-Pack, We-Drive service like ABF at www.upack.com or Broadway Express at www.broadwayexpress.net. ABF has almost 70 largely positive reviews on Epinions at www.epinions.com, including one that I myself wrote after I moved with them a year ago. Broadway Express has no category on Epinions but has well over a dozen rave reviews on www.movingscam.com.
The two companies are different, as I describe in my Epinions review and the comment that I added to it later, but I believe that both are excellent. Also, if you have no friends or family to help, both can put you in touch with third-party services that can supply loading and unloading labor. Even with that cost added in, people are saying that they have saved 30% to 40% over the cost of a full-service moving company by going with ABF or Broadway Express. Some people writing on Epinions who supplied their own labor and had large loads say that ABF saved them 50% or more.
We also need to work for good laws in this country to protect us against scammers. When people have their treasured possessions held hostage and/or damaged, they are permanently scarred. People come to MovingScam saying things like “I didn’t have enough money to pay the movers so they drove away with my things, and I felt like my soul left my body.” A strong law that would have protected us was watered down this year by lobbyists for the moving industry who paid Congressmen to listen to their point of view. Please visit MovingScam.com for details.
Thanks for posting this. I think I'll check out the site.
This happened to a friend of mine years ago. Fortunately, she lived in a gated community and the guard at the gate wouldn't let the moving company leave. They did end up paying more, but it could have been a lot worse.
The article is vague, what is the scam?
You don't need lawyers for small claims court.
Excellent advice. Had a bad experience back in 1998. Swore I would never move again. Thanks for the info.
It's pretty simple, really...
Movers: "OK, we can move you for, oh, say 300 dollars."
Customer: "Hey, great! That's teh best price I've gotten!"
Then, the truck is loaded up, and the "moving process" begins. At that point, they jack the price up and you don't get your stuff until you pay far more than the initial price they quoted you... Sort of like dealing with the IRS...
Thanks. We are considering a move out West. Ill guess Ill stick with someone I trust in a U-haul....me!
Ping!!!!
Extortion as soon as they have your property on the truck.
They don't get it in writing? Always get it in writing with every jot and tittle included. And don't pack it on the truck.
My oldest and my SIL moved to a bigger place in the building they live in several months ago. They moved all the light boxes themselves. I believe there was a 2 hour minimum. The movers dragged their feet, then charged them time for filling out the paperwork. My SIL got on the phone and gave them hell. They actually were refunded the extra amount.
I've heard worse stories, though.
Yeah, that would be an obvious one... Not sure what good it would do, though, except in court - and by then, your stuff ends up damaged etc...
A common carrier . . . subject to the jurisdiction of the Interstate Commerce Commission . . . shall issue a receipt or a bill of lading for property it receives for transportation . . . . That carrier . . . and any other common carrier that delivers the property and is providing transportation or service subject to the jurisdiction of the Commission . . . are liable to the person entitled to recover under the receipt or bill of lading. The liability imposed under this paragraph is for actual loss or injury to the property caused by (1) the receiving carrier, (2) the delivering carrier, or (3) another carrier over whose lines or route the property is transported into the United States .
Old Margie ran a pretty egregious scam herself.
Everything was in writing when I was scammed; the only problem is that nobody cared once everything I owned was on the truck... not the FMCSA, the DOT, the FBI, or the local police. It became a very expensive education, so now I'm just trying to keep the cost of education down for other consumers.
By the way, the U.S. Attorney General is taking action against the owner of the company that ripped me off. Yair Malol is facing charges of wire fraud, mail fraud, extortion, and conspiracy. I don't expect to see a dime in restitution, but that isn't a concern to me. My concern is that there are countless companies still out there practicing the same scam and continue to take advantage of unsuspecting consumers.
I have written a short article to help consumers find a reputable moving company that is available here:
http://www.movingscam.com/news/findmover.shtml
Tim Walker
MovingScam.com
Sorry about that abrupt ending (technical problems.)
Although having a contract may be useful should you ever see a courtroom or arbitration, as far as a scammer being forced to adhere to a contract or any item therein...most likely not. I have heard of instances where the local cops did intervene, but most (mine) will not, as it is considered a "civil matter," ironically, BECAUSE a contract is involved. And, as you have read here, most attorneys will not get involved in this type of suit because damages are confined to actual damages as defined by the contract, and these are typically legally complex cases. No compensation for legal fees, lost work, hotel or food expenses because they refused to deliver your stuff for a couple of months, punitive damages, etc. And even if you DO got through all this and are awarded a judgement in your favor, enforcement of payment of the judgement is another issue entirely!!!
Any other questions?
Welcome to FR. I know you're focused on the moving thing, but stick around and enjoy the best forum on the web.
Last time I moved I havd the advantage of having dealt with the mover several times where I work. They did a great job, didn't damage anything, and charged exactly what was agreed upon.
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