Beware of the Big Bad Moving Broker

With the advent of the internet there have been more opportunities to take advantage of consumers. People use brokers for everything from finances to our energy needs, so why not use a broker for other events in our lives? Well, one of the newest scams being utilized is moving brokers.

According to the recent Census Bureau, 39.8 million people in the United States moved within the previous in 2006. This means that a huge portion of the population had the same needs. Knowing this, would-be criminals have developed a way to monetize the industry by using the internet to prey on people's desire to save time and money.

Traditionally, moving brokers help the consumer to shop the local competition to find the best rate for the customer's move. However, recently some moving brokers have been devising methods to take advantage of that customer. Some work directly with a moving company. The mover will provide a bid lower than industry standard, so the customer uses his company for the move. The furniture is loaded, but before arriving at the new location the mover requests additional money from the customer for the move and holds hostage all property until this is made. Customers find that they can no longer contact their broker, and are forced to pay for their own belongings.

Crooked brokers also utilize another scam to dupe consumers. They require a customer to submit a down payment to lock in a price. When thinking of the cost of a state-to-state move, the cost savings can be extraordinary, which is why a consumer is apt to buy into an extremely reasonable rate. Those moving interstate are also more likely to plan weeks or even months in advance, so by the time they contact the broker again, they are nowhere to be found—phones are disconnected and websites are no longer available. When dealing with an internet-based company that is individually run, there is no way of knowing their location and who to look for when problems arise.

Now here's the good news! There are many reputable moving companies and methods to get a good qualified moving lead from an internet-based company.

• A consumer should use a reputable lead source. Check for credibility. Are they a member of the BBB (Better Business Bureau)?
• Are you able to get the estimate/quote in writing?
• Is the company you chose licensed? This can be checked online with the Department of Transportation's Federal Motor Carrier Safety Administration.
• Do not pay up front for a price guarantee. Most reputable companies will not require a payment until the day of the move.
• Shop around. Make sure to contact an aggregate that will get several estimates.
• Be honest. Moving companies are allowed to charge more than the estimated price if the consumer was not honest about what actually needed to be moved. By law they are not required to itemize the extra expense or weigh the additional items.

With a few simple, extra steps we can protect ourselves from moving scams.

Comments

[Chicago Movers]

This is an amazing blog post. I wish more people realized exactly how awful brokers are. I would only add to this blog that movingscam.com is a great resource for checking on brokers (they have a forum available) and I want to remind everyone that movers have a DOT and MC numbers, brokers ONLY have MC numbers!

This will help everyone tell the difference.

Excellent blog!