St Louis, MO-(Effingham Radio)- The Consumer Fraud Task Force is advising consumers to be careful when selecting a moving company. Statistics show thousands of consumers find themselves victims of moving fraud every year.
According to information released by the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration, more than 800,000 Americans hire professional moving companies annually. In 2017, the organization handled more than 4,100 moving fraud complaints. The average claim loss in those cases is almost $8,000. Reports of moving scams to Better Business Bureau’s (BBB) ScamTracker have increased this year. Since Jan. 1, more than 100 moving scams have been reported nationwide with losses reported as high as $98,000.
Here are some recent examples investigated by members of the Task Force:
- In July 2018, a federal grand jury in U.S. District Court for the Southern District of Ohio charged 12 individuals with conspiring in a racketeering enterprise to defraud individuals through their moving companies located throughout the United States. Businesses in Illinois and Missouri were among 10 states listed in the indictment. Officials said more than 900 consumers nationwide have been identified as victims in the scheme. The scheme allegedly was executed between April 2013 and July 2018. The defendants allegedly stole from customers who hired their companies to move their goods.
- BBB St. Louis issued a consumer warning in January 2018 about a network of Florida-based residential moving companies with reported St. Louis addresses. Complainants told BBB they filled out an online form requesting bids. The companies then increased their “binding moving estimate” – often dramatically – when the trucks arrived to move the goods or after they delivered the goods and often refused to unload the truck until the inflated fees were paid.
In order to protect yourself from being caught in a moving scam, the task force offers the following tips:
- Watch out for fly-by-night companies. Be on the lookout for company websites that have no actual physical address and no information about a mover’s registration or insurance. Another warning sign is if phone calls are answered with a generic “movers” rather than a company name, or if the company uses rented trucks. Still another warning sign is the moving company that doesn’t make an on-site inspection of your goods but only does estimates over the phone.
- Be wary of unusual requests. If a company asks for full payment in advance, that may be a warning sign. If a company won’t return items to you without more money than you agreed to pay, contact local law enforcement for help.
- Get everything in writing. Check licensing, confirm insurance coverage and get a written contract. Carefully read the terms and conditions of the contract, as well as the limits of liability and any disclaimers. Make sure pick-up and delivery dates are spelled out and understand how the rate is being calculated. Don’t pay cash and don’t prepay or make a large deposit. Understand terms of the insurance coverage and consider purchasing full-value protection.
- Keep an inventory of your belongings. Make a detailed inventory of your property and number the boxes they are packed in for tracking. Know that a mover is not liable for loss or damage of contents in customer-packed boxes, unless there is provable negligence on the part of the mover.
- Ask questions. Don’t be afraid to ask questions about anything you don’t understand. If the moving company can’t or won’t answer your questions, you might want to look for another mover.
- Report it. If you believe you have been a victim of fraud by a moving company, moving broker or auto transporter, file a complaint with the Federal Motor Carrier Safety Administration. Your complaint may trigger a federal enforcement investigation against the mover.
The Task Force, formed in October 2002, is a coalition of local, state and federal government agencies and nonprofit business and consumer groups in Missouri and Illinois that work together to protect consumer and donor rights and guard against fraud. The group has tackled predatory payday loan offers, tax scams, timeshare reselling fraud, credit repair and foreclosure scams, bogus sweepstakes, internet sweetheart scams, phony grant scams, home remodeling, and a variety of other issues.
To obtain information, or to report a scam, you may contact members of the Task Force:
- Better Business Bureau Serving Eastern and Southwest Missouri and Southern Illinois – (888) 996-3887; bbb.org.
- Federal Trade Commission – (877) FTC-HELP (382-4357); www.ftc.gov.
- Illinois Attorney General – (800) 243-0618; www.illinoisattorneygeneral.gov.
- Missouri Attorney General – (800) 392-8222; www.ago.mo.gov.
- U.S. Attorney, Eastern District of Missouri – (314) 539-2200;www.usdoj.gov/usao/moe.
- U.S. Postal Inspection Service – (877) 876-2455; postalinspectors.uspis.gov.
- U.S. Secret Service – (314) 539-2238; www.secretservice.gov.