CHARLESTON, W.Va. -- People who plan to move should be cautious about hiring movers online, as several Internet companies that bill themselves as movers are just "bait-and-switch" companies, according to a recent report from a committee chaired by Sen. Jay Rockefeller, D-W.Va.
Such scam operations will collect fees, then immediately transfer customers to real moving companies. The scam companies keep their fees and customers must then pay the full cost of moving to legitimate moving companies.
The Senate Committee on Commerce, Science and Transportation, chaired by Rockefeller, conducted a year-long investigation into this scam, which has been growing during the past decade, according to the report, "Internet Moving Brokers: A New Consumer Protection Problem in the Household Goods Moving Industry."
The companies give families one rate to move their belongings, the report says, then charge them "a steep markup to complete the move -- effectively holding the person's goods hostage until they are paid."
Professional moving companies typically do not charge customers deposits, while "bait and switch" operations typically charge well over $1,000, according to the report.
"Thousands of consumers get stuck each year by abusive moving companies at one of the most vulnerable times in their lives," Rockefeller said. "We must put a stop to the practices these companies are using to swindle consumers."
The new report points out:
• Customers are not told they are hiring a broker, not a moving company. "They were surprised when an entirely different company arrived on the day of their move."
• Broker fees often amounted to thousands of dollars.
• Internet moving brokers never visit the homes of customers to look at their possessions and estimate actual moving costs.
• The actual movers often hold their customers' possessions hostage until they paid their unexpected fees.
The small group of "Internet moving brokers" generated a large number of consumer complaints, which sparked the Senate investigation.
CHARLESTON, W.Va. -- People who plan to move should be cautious about hiring movers online, as several Internet companies that bill themselves as movers are just "bait-and-switch" companies, according to a recent report from a committee chaired by Sen. Jay Rockefeller, D-W.Va.
Such scam operations will collect fees, then immediately transfer customers to real moving companies. The scam companies keep their fees and customers must then pay the full cost of moving to legitimate moving companies.
The Senate Committee on Commerce, Science and Transportation, chaired by Rockefeller, conducted a year-long investigation into this scam, which has been growing during the past decade, according to the report, "Internet Moving Brokers: A New Consumer Protection Problem in the Household Goods Moving Industry."
The companies give families one rate to move their belongings, the report says, then charge them "a steep markup to complete the move -- effectively holding the person's goods hostage until they are paid."
Professional moving companies typically do not charge customers deposits, while "bait and switch" operations typically charge well over $1,000, according to the report.
"Thousands of consumers get stuck each year by abusive moving companies at one of the most vulnerable times in their lives," Rockefeller said. "We must put a stop to the practices these companies are using to swindle consumers."
The new report points out:
• Customers are not told they are hiring a broker, not a moving company. "They were surprised when an entirely different company arrived on the day of their move."
• Broker fees often amounted to thousands of dollars.
• Internet moving brokers never visit the homes of customers to look at their possessions and estimate actual moving costs.
• The actual movers often hold their customers' possessions hostage until they paid their unexpected fees.
The small group of "Internet moving brokers" generated a large number of consumer complaints, which sparked the Senate investigation.
Internet moving brokers often use company names "very similar to well-known, reputable brand names." Their estimates are "usually significantly lower" than legitimate moving companies, according to the report.
The problem is likely to get worse, unless customers become aware of the growing scam.
"As more Americans feel comfortable arranging their household moves online, Internet-based moving brokers will have more opportunities to harm consumers," the Senate report states.
Companies moving household goods across state lines are subject to federal regulations and prosecution. States regulate moves made within their own borders.
New federal Surface Transportation legislation, which became law July 6, requires all moving companies to meet additional registration requirements. Their owners must take an examination about federal consumer-protection laws and promise to abide by those laws.
Today, the Better Business Bureau and the American Moving and Storage Association both advise consumers planning to move to get "multiple estimates based upon in-home visual inspections of their goods."
Aldo DiSorbo, one subject of the Senate Committee report, allegedly operates his companies under several names, often changing the names of each of one his companies to avoid public scrutiny.
Between November 2002 and May 2010, DiSorbo gave his Fort Lauderdale, Fla.-based company four different names: GG Moving, Golden Gloves Moving, Champion Moving, then Storage and Moving Squad Inc.
Even experienced Internet consumers often can't immediately tell the difference between legitimate and illegitimate moving companies, because most customers only hire moving companies once or twice in their lives.
The report concludes: "As the household goods moving industry continues to evolve, policymakers, regulators and law enforcement officials will need to put more effort into understanding the role of Internet brokers and the impact that these practices are having on consumers."
Reach Paul J. Nyden at pjny...@wvgazette.com or 304-348-5164.
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