No matter how much stuff you own, moving that stuff into a new apartment scores about a 9.5 out of 10 on the crap-I-never-want-to-do-ever-again scale. Finding a moving company is a big part of the hassle. Not only is it hard to trust other people with your prized collection of Ikea furniture, there are a number of people that have been hit with moving scams.
Not every moving company is bad, but there are enough shady moving companies that it’s worth being wary. Before you hand your stuff off, you should know a thing or two about the moving industry and what to look for when trying to spot a potential scam.
The Moving Industry in a Nutshell
Before 1980, I’m told that Americans generally had reliable moving companies. Since only a few companies legally moved goods across state lines, it was easy for the government to regulate the moving industry.
Things changed in 1980 when the moving industry deregulated with the Household Goods Transportation Act. The whole business turned upside down – interstate movers started issuing binding or “fixed estimates,” which led to price instability and ultimately opened the door for increased competition. Prices fell as was likely intended, but so did the quality of service.
The Rules of a Moving Scam
The most common moving scam involves a rogue moving company using a low non-binding estimate. After moving the goods, the company holds the cargo hostage by demanding inflated charges.
For example, let’s say you received an estimate for $1,000 to move your prized Hello Kitty collection from Seattle to your new apartment in San Francisco, and you sign the contract.
Two weeks later, the truck rolls up to your new apartment, but now the moving bill is $2,500 – What?! Even more bad news, the shady movers tell you they’re going to take your kitties and run if you don’t pay up.
These scams happen all the time, and there’s not much we can do about them, besides perhaps calling your representative. The Federal Motor Carrier Safety Administration (FMCSA) regulates the moving industry, but since they employ less than 20 people, watching over hundreds of moving companies is almost impossible to do very effectively.
How to Avoid Moving Scams
Here’s a few tips to avoid getting scammed during the big move, but you might not like some of the answers:
1. Just sell all your stuff and start fresh. No one really wants to put together another Ikea Malm, but it sounds a whole lot better than the great Ikea heist of 2010.
2. Move it yourself. It’s cheaper, and the only person to blame for damaging your stuff is yourself. Besides, loading your own U-Haul isn’t that bad… except when you have to drive cross-country in a U-Haul.
Note: Loading your own U-Haul doesn’t sound like a good idea? No worries, there are plenty of companies that will load it for you.
If you need to go with a moving company, here are some basic tips:
1. Get referrals from real estate firms. They deal with these movers all the time and they should have their favorites.
2. Beware of completely internet-based movers. It’s great if the moving company has a website, but make sure there’s a brick and mortar place of business for you to meet with them. This makes it much easier to track them down in the event of a problem, and it gives a door for the police to knock on as well.
Once you find a mover that passes your gut check, check their listing on the Better Business Bureau. There you can find out their full legal name, contact information and service grade.
Finally, right before you hand over your last worldly possession, ask for a booklet called “Your Rights and Responsibilities When You Move.” Moving companies legally have to give you this information, and it’s a good sign they have their act together.
If you can find a moving company that passes all these tests, you should be all right. Keep your wits about you, though. Happy moving and good luck.