The Bad Side of Deregulation

Moving to Tucson, Arizona? Maybe your company has relocated you to Tucson? Maybe you're retiring to Tucson, or somewhere else in southern Arizona. No matter, if you're moving, you'll likely hire a moving company – many do. If you are about to contract with a moving company, you're encouraged to read this helpful article.

Anyone who has placed everything they own on a truck that is being driven by someone they’ve never met — and then watched as that truck pulls away from their now empty former home — understands the importance of a reliable moving company. With burgeoning Internet business and the deregulation of the transportation industry under the Clinton administration, it is more important than ever to be a diligent and vigilant consumer. All of your household goods, which are likely all of your worldly goods, are on the line.

When the Household Goods Transportation Act of 1980 was passed, the moving industry was no longer overseen by the Interstate Commerce Commission. Instead of having their rates dictated to them by the FCC, moving companies could now offer binding contracts. This allowed small moving companies to enter the fray. Many of these companies were not as scrupulous as the major van lines had been under the ICC, and oversight wasn’t as stringent, or even as competent. Companies were competing on prices, and some started low-balling their customers, giving them a very low estimate and then demanding a higher price upon arrival of their goods. If the consumer didn’t pay the higher price, the moving companies were allowed to hold their possessions hostage, and eventually auction them off to satisfy the amount owed. This unscrupulous technique of extortion created a win/win situation for these movers, and a lose/lose situation for the consumers they preyed upon.

To protect yourself, you must make sure that you do your research, and use only a reputable moving company. Just like many scams, these moving company scams have a tendency to hit the elderly a little harder than the rest of the population, which is why Arizona and Florida have an alarmingly high number of complaints. So, be a good neighbor, offer your assistance if you think it will help. Following are some tips that may save you aggravation, or your friends, tons of frustration — and money:

1. Don’t shop based on price alone. The lowest price doesn’t necessarily mean the best service, nor does it mean the worst service, it simply means that you need to research that company further. This is especially true if the company is small, or appears to be local.
2. Use the Internet cautiously. It’s easy to scam people over the Internet, a company based in California can’t very easily come out and inspect what you want moved if you live in New Hampshire. Never accept an estimate over the Internet – or over the telephone. Trained professionals from the moving company should always come to your home to ensure that you are given an accurate estimate of what it will cost to properly pack, and ship, and finally offload your goods. Remember that old adage about an offer that sounds too good to be true…
3. Get a signed contract – and have the contract specify exactly what services will be included in the price. As a consumer, don’t add on services after the contract has been signed without a signed and properly initialed addendum. Protect yourself!
4. Understand how you’ll be charged. Movers quote prices by the item, by weight, or by the hour. They also charge for products used, so a little oversight in the packing department may pay off also. If you get an hourly quote, get a maximum and minimum price. If the quote is by item, make your own inventory list. A complete inventory is a good idea on any kind of move anyway. Just as the company lists what they pack in the box, you make your own lists. Yours will usually be a bit more complete, and more accurate. Using a digital camera to show the condition of items at the time of shipment is also not a waste of time. Digital cameras make this fast, easy, and inexpensive. These pictures can also be retained for certain types of insurance riders you might want later.
5. Ask the company for proof of insurance, and check your own homeowner’s policy to see if your insurer will cover your items during a move.
6. Get references from past customers, and then be sure to check them out. In addition, you can research companies on web sites such as www.bbb.org, www.safersys.org, operated by the Department of Transportation (DOT). With a company’s DOT or motor carrier number a consumer can find up-to-date insurance, safety, and inspection records. www.moving.org is a web site maintained by the American Moving Storage Association – an industry created watchdog organization. Another excellent site is www.movingscam.com, a web site established by someone who had been scammed, and decided to fight back. You can also ask your Mehalic- Halle real estate agent for assistance in any area concerning your move or relocation.
7. File a complaint if necessary. You need to include copies of your contracts, receipts, and any other pertinent documents and photographs that will help you validate your claim. You can file through your local Better Business Bureau or with the Department of Transportation.
8. Finally, and again, be an informed consumer, do you homework, know the company you choose and make sure everything is in writing. It may be a little more effort in the beginning, but by the end of the move you will be much happier.

You can't be too careful when you're hiring a moving company. You cannot 'over protect' yourself. And don't be fooled by the presence of a contract. Contracts are great, and necessary, and provide you with some recourse – however – they in no way protect you from the scam. The reason? Possession is 9/10 of the law – that's the reason. Let's look at the scam, how it works, and why the contract is not actually a protective measure.

It's December, and you start to look into moving companies. You live in Nebraska, and you are moving to Tucson. You do your research diligently, and finally opt to contract with the Planetary Moving Company out of New York. They quote you a complete move for $2,000.00

On January 1, Planetary Moving Company comes to your house. They do a bang-up job of packing your goods and loading them on their truck. You're pleased. On the morning of January 2, you load the kids, and the family Saint Bernard into the car and start your drive to Tucson.

Late on January 4 you arrive at your new, completely empty home in Tucson. Your goods are scheduled to arrive the following day. The family sleeps on the carpeted areas, using the car blankets for warmth, and some rolled up jackets as pillows.

On January 5 you bounce out of bed – or off the floor, ready to accept your goods – and committed to getting the bedrooms and bathrooms ready for use that same day. You shower using the soap from the motel you stopped at on the way to Tucson, and dry off with, well, whatever – and so do the kids. You wait patiently for your goods to arrive, but the day passes and nothing gets there. You call the moving company – and they tell you that they ran into some weather problems and were delayed a day, but they will surely arrive first thing tomorrow morning. You are both relieved, and very irritated, but…

On January 6 you start watching for the moving truck at 6 AM – unable to sleep comfortably on the floor any longer. At about noon, a car pulls up in the driveway and a nice fellow comes to your door. He tells you that the move did not go as they had planned, and they had to pay extra costs for transportation. "How much more" you ask. You are told it will cost an additional $1,200.00 to get your things off loaded. You are now incensed and waving your singed contract around you scream at the nice man that this wasn't covered and so forth. The nice man says he's sorry, hands you a card with a phone number to call when you get the money together, and he leaves. (It's right about now that the kids will ask what's for dinner?) You spend the balance of the afternoon finding the attorney you will go see tomorrow.

The morning of January 7 you go to see an attorney. For a few hundred dollars he jumps into action. On January 10 he calls you and says the papers for court are ready for your review and signature. You put on the clothes you've been wearing (and washing in the sink for days) and head downtown. You sign the papers and the attorney submits them to the courts. The moving company has thirty days to respond to your complaint.

On February 6 your attorney calls you and says that Planetary Moving Company has responded, and so you again go to his office, review papers, and sign the next action. Of course, in the meantime you have no household goods, the kids are going to school in rags, or new clothes which you had to pay for, but did not really need – and all of your things are being kept in storage by Planetary Moving Company. The next legal action allows Planetary Moving Company another 30 days to respond. Your cost of legal fees, including filings, has now reached $1,700.00 - $500.00 more than the extra cost that Planetary Moving Company wanted for your things. You are also burdened with buying new towels, pots, pans, etc. – just so you and the family can make it. Dad has also had to buy some very expensive new clothes to continue going into the office. All this at a time when you knew you'd be addressing new costs anyway.

Okay, enough, you get the idea. As was mentioned earlier – possession is 9/10 of the law. Your case will come to court in a few months, maybe. At that time you may even get your goods back, or at least an order from the court saying you will, but that too can take time. If you want satisfaction for your relevant losses such as all the new things you had to buy to survive, and the attorney – that's another matter.

The lesson here is a simple one: take whatever steps are necessary to avoid this from happening to you. Paying a little more up front is much better than going with a lower price, that ends up ruining your life, the lives of your family members, and your bank account. Oh yes, and Fido won't be happy at all without that chew toy you packed in the garage box! Do your homework, and have a safe, happy move.

Enjoy Tucson!

If you need any help selecting a moving, for a move across town, or relocating across country – ask your Mehalic- Halle Team member. The Mehalic- Halle Team is always ready to serve you with an absolute commitment to professionalism, excellence, and satisfaction.