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A moving scam is a scam by a moving company in which the company provides an estimate, loads the goods, then states a much higher price to deliver the goods, effectively holding the goods as lien.
The moving business in the United States was deregulated with the Household Goods Transportation Act of 1980. [1] This act allowed interstate movers to issue binding or fixed estimates for the first time. Doing so allowed hundreds of new moving companies to begin operations. This led to an increase in competition and soon movers were no longer competing on services but on price. As competition drove prices lower and decreased what were already slim profit margins, "rogue" movers began hijacking personal property as part of a new scam. The Federal Motor Carrier Safety Administration (FMCSA) enforces Federal customer protection regulations related to the interstate shipment of household goods (i.e., household moves that cross State lines). FMCSA has held this responsibility since 1999, and the Department of Transportation has held this responsibility since 1995 (the Interstate Commerce Commission held this authority prior to its termination in 1995). [2]
There are many versions to the moving scam, but the basic scam begins with a prospective client contacting a purported licensed moving company and requesting a cost estimate. In today's[ when? ] market this often happens online via moving company marketing websites. These moving companies can be prone to quoting sometimes too low, but usually reasonable prices with no room for the movers to provide a gratuity incentive to provide quality service without upselling packing services.
Once the moving company has secured a move by providing a non-binding or binding estimate, they arrive to pack and deliver the goods and the foreman, a trained loading professional performs a visual estimate. Often the scam movers use deceptive pricing or weight (which is not based on actual weight, figure of cubic footage) measurements including prices based on the gross weight of the moving vehicle. After packing and loading, the client is informed that their goods went over the expected weight estimate and the additional weight will be charged at a substantially higher rate (often double the original price per pound). Rogue movers will not inform a client of these discrepancies until the client's goods have been weighed at a certifiable scale, far from the client's original pickup location. The new price may be four or five times higher than the original estimate. The scam movers know that most people will be forced to pay these exorbitant rates based on their need for the personal effects.
The interstate moving business in America is regulated by the Federal Motor Carrier Safety Administration (FMCSA), part of the United States Department of Transportation. [3] Only a small staff (fewer than 20 people) is available to patrol hundreds of moving companies, making enforcement difficult. Furthermore, in the United States, there are in most cases no regulations that clearly qualify moving companies as "reliable", and thus such scams are relatively common. [4] Moving companies can provide and often display a Department of Transportation (DOT) license.
Moving companies that operate within the borders of a particular state are usually regulated by the state department of transportation or the public utilities commission or another in that state. This applies to some of the US states like in California (California Public Utilities Commission) [5] and Texas (Texas Department of Motor Vehicles). [6]
There are some US federal laws which govern moving cost estimates. For instance, in the case of out-of-state moves, movers must perform an in-person survey of a client's goods before giving an estimate unless a physical survey waiver agreement is signed; furthermore, this estimate must be in writing. [7] In addition, estimates can be either binding (a set fee, regardless of weight), [8] binding not-to-exceed (based on weight but with a maximum fee), or non-binding (based on weight). [9]
Road transport or road transportation is a type of transport using roads. Transport on roads can be roughly grouped into the transportation of goods and transportation of people. In many countries licensing requirements and safety regulations ensure a separation of the two industries. Movement along roads may be by bike, automobile, bus, truck, or by animal such as horse or oxen. Standard networks of roads were adopted by Romans, Persians, Aztec, and other early empires, and may be regarded as a feature of empires. Cargo may be transported by trucking companies, while passengers may be transported via mass transit. Commonly defined features of modern roads include defined lanes and signage. Various classes of road exist, from two-lane local roads with at-grade intersections to controlled-access highways with all cross traffic grade-separated.
A lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the lienee and the person who has the benefit of the lien is referred to as the lienor or lien holder.
Cargo consists of goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for commercial gain. Cargo was originally a shipload but now covers all types of freight, including transport by rail, van, truck, or intermodal container. The term cargo is also used in case of goods in the cold-chain, because the perishable inventory is always in transit towards a final end-use, even when it is held in cold storage or other similar climate-controlled facilities. The term freight is commonly used to describe the movements of flows of goods being transported by any mode of transportation.
A commercial driver's license (CDL) is a driver's license required in the United States to operate large and heavy vehicles or a vehicle of any size that transports hazardous materials or more than 15 passengers.
A truck driver is a person who earns a living as the driver of a truck, which is commonly defined as a large goods vehicle (LGV) or heavy goods vehicle (HGV).
A freight rate is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport, the weight of the cargo, and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and volume of the cargo.
Interstate Van Lines is a family-owned American moving company based in Springfield, Virginia. The company handles storage and shipping for corporate and government clients, including AOL, Hewlett-Packard and the US military. It is a subsidiary of Interstate Group Holdings, Inc. which owns a number domestic and international moving and logistics companies of which Interstate Van Lines is the largest.
A moving company, removalist or van line is a company that helps people and businesses move their goods from one place to another. It offers all-inclusive services for relocations, like packing, loading, moving, unloading, unpacking, and arranging of items to be shifted. Additional services may include cleaning services for houses, offices or warehousing facilities.
Freight companies are companies that specialize in the moving of freight, or cargo, from one place to another. These companies are divided into several variant sections. For example, international freight forwarders ship goods internationally from country to country, and domestic freight forwarders, ship goods within a single country.
The Federal Motor Carrier Safety Administration (FMCSA) is an agency in the United States Department of Transportation that regulates the trucking industry in the United States. The primary mission of the FMCSA is to reduce crashes, injuries and fatalities involving large trucks and buses.
Hours of Service (HOS) regulations are issued by the Federal Motor Carrier Safety Administration (FMCSA) and govern the working hours of anyone operating a commercial motor vehicle (CMV) in the United States. These regulations apply to truck drivers, commercial and intercity bus drivers, and school bus drivers who operate CMVs. These rules limit the number of daily and weekly hours spent driving and working, and regulate the minimum amount of time drivers must spend resting between driving shifts. For intrastate commerce, the respective state's regulations apply.
The Federal Bridge Gross Weight Formula, also known as Bridge Formula B or the Federal Bridge Formula, is a mathematical formula in use in the United States by truck drivers and Department of Transportation (DOT) officials to determine the appropriate maximum gross weight for a commercial motor vehicle (CMV) based on axle number and spacing. The formula is part of federal weight and size regulations regarding interstate commercial traffic. The formula is necessary to prevent heavy vehicles from damaging roads and bridges. CMVs are most often tractor-trailers or buses, but the formula is of most interest to truck drivers due to the heavy loads their vehicles often carry.
The trucking industry serves the American economy by transporting large quantities of raw materials, works in process, and finished goods over land—typically from manufacturing plants to retail distribution centers. Trucks are also used in the construction industry, two of which require dump trucks and portable concrete mixers to move the large amounts of rocks, dirt, concrete, and other building materials used in construction. Trucks in America are responsible for the majority of freight movement over land and are tools in the manufacturing, transportation, and warehousing industries.
The motor carrier safety rating is an evaluation given to an interstate commercial motor carrier by the Federal Motor Carrier Safety Administration (FMCSA).
Relocation, also known as moving, or moving house, is the process of leaving one's dwelling and settling in another. The new location can be in the same neighborhood or a much farther place in a different city or different country (immigration). It usually includes packing all belongings, transferring to the new home, unpacking, and administrative or bureaucratic tasks, such as changing registration data.
The American Moving & Storage Association (AMSA) was the non-profit trade association representing members of the professional moving industry based primarily in the United States. Its approximately 4,000 members consisted of van lines, their agents, independent movers, forwarders, industry suppliers, and certain individuals and organizations.
The trucking industry in the United States has affected the political and economic history of the United States in the 20th century. Before the invention of automobiles, most freight was moved by train or horse-drawn vehicle.
An auto transport broker is a type of cargo broker that specializes in the shipping and transportation of vehicles. Most vehicles shipped in the U.S. are cars and trucks, but many brokers handle boats, RVs, motorcycles and other types of vehicles as well. Auto transport is classified as "specialized freight trucking" under NAICS code 484230.
A freight broker bond must be obtained by freight brokers and freight forwarders in the United States in order to obtain or renew their license.
Atlas World Group, Inc. is a privately owned company in the moving and storage industry headquartered in Evansville, Indiana. Founded in 1948, Atlas holds the position as the 11th largest private company in the state. Atlas World Group is the parent and holding company of Atlas Van Lines, Inc. and eight other subsidiary companies that offer transportation, storage, and related relocation services on a global scale through its network of agents and service partners. Service areas include consumer relocation, corporate relocation, government and military services, international relocation, and logistics.
