Many people report that moving companies engage in deceptive practices. Some companies perpetrate fraud, even taking a person’s money as an advance on moving services and disappearing without providing any service.
Of course, the general goal of dishonest tactics is to extract more money from customers. However, all situations that seem to be scams are not necessarily fraudulent. For example, delays in delivering a person’s belongings may be caused by genuinely unexpected circumstances, such as weather disasters or unexpected road closures.
Delivery delays are reported to be common with long-distance moves. In addition, honest errors and miscommunication can occur. A moving company only estimates the weight of a person’s belongings and the time it will take to complete a move. The final weight and time may differ from estimates for legitimate reasons.
An interstate move is a move from one state to another and is regulated primarily by the Federal Motor Carrier Safety Administration (FMCSA). In an interstate move, a moving company must provide its customer with a written estimate of total charges or a guaranteed total price. If a person works through a broker and the broker gives them an estimate, the estimate must be in writing.
If the federal Carmack Amendment applies, and it does apply to interstate moves, it has the effect of limiting the liability of moving companies. Specifically, the damages that a moving company pays if a customer’s belongings are damaged or destroyed is limited to the value of the lost or destroyed belongings or the cost to repair them if they are damaged.
In order to ensure that the Carmack Amendment applies, a moving company must issue a receipt, or bill of lading, for the property that the company transports to the customer’s new location.
A moving company is responsible for any damage to belongings that it has transported. The owner does not have to prove that the moving company was in any way negligent in order to collect damages.
The statute of limitations for a Carmack Amendment claim is 9 months from the date of the loss.
Moving companies that operate exclusively within the state of Massachusetts are regulated by the Massachusetts Department of Public Utilities (DPU). The DPU maintains a list of these companies on its website for reference. An intrastate moving company must be licensed by the DPU to do intrastate moves in Massachusetts.
A person could have experienced a significant loss from a clear fraud, e.g., the moving company collects a large deposit and disappears without providing any service. In that case, they would want to talk to a local Massachusetts lawyer. Their lawyer might advise them to report their experience to law enforcement as they may have been the victim of a crime. Then they could discuss the possibility of suing the moving company for damages.
In some situations, it may also be possible to join a class action lawsuit against a moving company on occasion. In one reported class action lawsuit, the customers alleged that a moving company ran a scheme in which it held their invaluable family heirlooms hostage after loading them onto their moving vans. The moving company then demanded that their customers pay cash ransoms amounting to a thousand dollars to get the return of their property.
The customers sought $5 million in damages, alleging that the moving company held their property ransom. When they paid the ransom, their belongings were returned in a damaged condition, and some items were never returned.
What type of lawsuit a person may file is going to depend on the unique facts of the person’s situation.
Who Regulates Moving Companies?
As noted above, the Transportation Oversight Division of Massachusetts’s DPU regulates companies that move household goods within that state. A list of the moving companies that have licenses from the DPU and their rates can be found on the DPU’s website.
In every state, the U.S. Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA) regulate moving companies that do interstate moves. The FMCSA licenses moving companies that move people from one state to another.
In addition to licensing moving companies, the FMCSA is in charge of formulating and enforcing safety regulations for interstate moving companies. The FMCSA requires all moving companies to have a USDOT number and to comply with federal safety regulations.
When moving out of state, a person can check the USDOT number of a moving company by going to the FMCSA website at the following web address:
It is true that the FMCSA and USDOT regulate interstate moving companies only. However, a person may still check out the USDOT number of their intrastate mover to learn its status and get useful background information about the company.
A person should check a company’s complaint history and reputation with the Better Business Bureau and other organizations that aim to protect consumers. A person wants to read online reviews.
Additional recommendations are as follows:
- Get estimates in writing
- Get at least 3 written estimates from 3 different companies
- Do not always choose the low estimate because dishonest moving companies may give a person a low estimate to get the business and then demand more money later in the move
- Ask a moving company to provide a detailed written estimate of all possible charges and additional fees
- Do not pay cash or a large deposit before the move happens. Use a credit card to pay as this offers some protections if there is a problem
- Move items of exceptional value; do not entrust them to a moving company. Such items as cash, valuable electronics, jewelry, medications, medical equipment, and records that contain confidential information, e.g., Social
- Security numbers and bank account numbers should not be entrusted to a moving company
- Be present when the move happens to ask questions, provide direction, and make sure nothing is left unmoved
- Do not sign blank or incomplete documents
- A person should get copies of everything they sign.
Another option a person has is to buy moving insurance. If a person has insurance, they may turn to their insurance company to reimburse them for any losses they suffer. Of course, a person must also be cautious when buying insurance to make sure they get the coverage they need from a company that pays when a legitimate claim is submitted.
If a person hires a moving company, the company is responsible for the belongings that it moves. In fact, if a person is making an interstate move, federal law requires the moving company to offer 2 kinds of moving company insurance policies. The type a person chooses determines the payout they would receive if any of their belongings are lost or damaged.
Are There Remedies You Can Have against a Moving Company?
If the move is an interstate move, then the federal Carmack Amendment limits the legal action that a person can take against the interstate mover and the remedy that a person may recover.
A customer is limited to recovering the value of the actual loss or damage to the property caused by the moving company. So, damages for non-economic losses would not be available in a Carmack claim involving an interstate move. A person also has to file a lawsuit in federal court.
If the move is an intrastate move, a person might sue a moving company for breach of contract, breach of warranty, negligence, or fraudulent misrepresentation. In most cases, a person would want to recover money damages to compensate them for their economic losses. For example, they might seek compensation for lost belongings or expenses they incurred because of a delay in delivery.
A person might sue for negligence or fraudulent misrepresentation, and the facts of their case justify it. In that case, they might also recover an award of money for non-economic damages, such as emotional distress, pain and suffering, or even possibly punitive damages.
It is always important to remember that a person must have evidence to prove their losses, both economic and non-economic.
What Kind of Lawyer Do I Need to Sue a Moving Company?
You may have suffered losses because of poor service or worse from a moving company. In that case, you want to talk to an experienced Massachusetts business attorney. LegalMatch.com can quickly and easily connect you to a Massachusetts business attorney who can analyze the facts of your case and help you recover compensation for your losses, either from the moving company that performed your move or the insurance coverage you had.
