The Department of Transportation regulates moving companies that engage in interstate moves, and they are subject to state ordinances if they operate exclusively within state borders. Most people move on their own rather than hiring a professional: of the 3 million people in the US who move to another state annually, less than 30% will use a moving company. Still, there are thousands of companies involved in the business. The majority are small companies, with less than 10% employing over 100 people. There are a lot of companies in the industry, and things can and do go wrong.
Within the Department of Transportation, the Federal Motor Carrier Safety Administration (FMCSA) oversees the industry. It regulates trucking, buses, and limousines in addition to interstate moving companies and brokers. While the primary mission of the FMCSA is the prevention of highway-related fatalities and injuries, it has also created a task force to identify and investigate household goods carriers involved with fraudulent schemes and mistreatment of consumers.
FMCSA rules require companies that transport cargo between states (including moving and storage companies) to acquire a US DOT number by registering with them. Most states extend this requirement to companies doing business within state lines and may have additional requirements through their state department of transportation, or possibly the state public utility commission or consumer protection agency.
What does the FMCSA require?
In addition to registering, moving companies must abide by the rules governing interactions with consumers. These are described in detail in the publication Your Rights and Responsibilities When You Move, which is one of two things the mover must provide to you. The other is a copy of (or link to) the Ready to Move brochure.
Consumers can verify FMCSA registration by checking the DOT database for their DOT number, which should also be displayed in any company advertising and provided to the customer with the estimate and other written communications. FMCSA also maintains information regarding safety history for registered movers as well as complaints. Complaints on the site include problems with estimates, deposits, weights, delivery, losses, claims, false advertising, and others.
How does the FMCSA protect me from fraud?
FMCSA rules require that the moving company provide the consumer with a written estimate based on a visual inspection of the household goods to be moved. While there are exceptions to the requirement for a physical survey (distance and customer preference), it is the best way to assess the number of goods and provide an accurate gauge of the weight and cost of the shipment. FMCSA states that it is a red flag if a moving provider is unwilling to conduct the physical survey or provide a comprehensive written estimate (signed by both the company and the consumer). The assessment should detail the inventory of goods (can also be referred to as a cube sheet or table of measurements) and any ancillary services agreed to, such as packing and storage. The estimate should be attached to a copy of the company’s tariff, a detailed outline of all fees, including services for long carries, shuttles, stairs, and so on.
The movers must provide an order for service, the contract between you and the mover, which must include specific information. This document lists the dates for the pickup and delivery of your shipment, the amount of liability you requested, and any special services you have ordered and a place and telephone number where the mover can contact you during the move. It must also include information about any other contractors the mover is using during the move and means for you to contact the carrier or subcontractors during the shipment period. If you cancel this order more than three days after signing it, you may pay a penalty.
When the shipment is loaded, the company must provide you with a bill of lading. The bill of lading is similar to the order for service but is final. It will also have the following attachments:
a. The binding or non-binding estimate
b. The order for service
c. The inventory
d. The liability option you have selected for the shipment: Option 1) Full (Replacement) Value Protection or Option 2) Waiver of Full (Replacement) Value Protection.
Payment is regulated as well. If you have a binding estimate, you can not be asked to pay more than 100% of the estimated amount, plus any charges for impracticable operations in an amount not exceeding 15% of the total bill for delivery. Note that if additional goods or services were requested, a new estimate should have been created and signed by both parties at the time of loading. If a moving company refuses to deliver your shipment when you pay 100% of a binding estimate and payment for impracticable operations as specified, the company is violating federal law. In the case of a non-binding estimate, the percentage that can be assessed at delivery is 110%. That does not mean that you don’t have to pay additional costs incurred. It means that your possessions must be delivered, and the company can then bill you for the balance after 30 days. That is also the case regarding other charges that exceed the 15% threshold allowed on delivery day.
The order for service, the tariff, and the bill of lading should all specify what forms of payment are acceptable. The mover should accommodate what has been previously agreed upon. Also, the mover can not attempt to collect payment for any portion of a shipment lost or destroyed (unless the loss was your fault). For example, if your delivery was carried in two trucks and only one shows up, the carrier cannot request payment for the portion which is missing.
What else can I do to protect myself?
The FMCSA recommends being cautious when you evaluate moving companies. Make sure you get several estimates, and that the company is willing to answer your questions, provides all the required paperwork, and generally seems to act with integrity. If you have trouble reaching the same person when you call, and the phone is answered with a recording or a non-committal greeting of “movers” rather than a company name, you have reason to be suspicious. If the estimate seems to good to be true, and the company pushes you to the non-binding estimate, you have reason to worry. Never sign any blank or incomplete documents. Be diligent in perusing the inventory—if you have a non-binding estimate, but the inventory is inaccurate, your estimate is not going to be a genuine reflection of the weight of the shipment. Protect yourself by choosing a reputable moving company.
Ask friends for recommendations, check with the local Better Business Bureau, and look for reviews on sites like Yelp. Do the research, trust your instincts, and find a great company for your move.