Feds accused of issuing 'licenses to steal' as moving company scams rise

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Thinking about moving? Do your homework. Complaints about moving companies to federal regulators have more than doubled since 2015. Yet only a handful of cases have been prosecuted. From valeriereports & Matt Clark

launches with phony online reviews and promises to save customers money. Next, real reviews start to roll in with horror stories from people complaining they had been dramatically overcharged or had valued personal effects damaged or held hostage.

Still,"a significant expansion of FMCSA's capacity and authority in household goods enforcement would require congressional action," a Department of Transportation official toldThe current ratio of moving company complaints to closed civil and criminal cases is"shocking," said Teresa Murray, director of the consumer watchdog program at the Public Interest Research Group, a national nonprofit advocacy organization.

The company Pompliano had chosen was Florida-based Gold Standard Relocation LLC - which was alleged in Lask's lawsuitith national reach - a claim that the company's owner, Margaret Drayton denied. The DOT says its own enforcement actions are limited by a 2019 arbitration decision that held it has no authority to assess mover fines, as it had been doing for years. Instead, it must sue movers in civil court. The agency can also pursue criminal action but says it has limited resources to investigate and must rely on the

For carriers, the burden is higher. They must pay a monthly premium for a minimum of $700,000 worth of insurance and abide by and regularly face inspections for compliance with truck and driver safety laws. In addition to Gold Standard, there were Relocate US LLC; Liberty Bell Moving Group; Keystone Moving Group LLC, and Moving Solutions LLC. Then there were Armada Moving Group, LLC; Legacy Van Lines LLC and Real Time Relocation LLC, according to Florida state public records. Some of them were distinct, new companies. Others were name changesin a written statement that she has heard of reincarnation of moving companies,"however, this is not the case with these companies.

"What are they going to do? They put them in between a rock and a hard place," the employee said."'Either you pay us our money or we're shutting the doors and we're taking off and then you're going to owe us storage fees. You're going to owe us redelivery fees.' All these other things get tacked on to make that $1,800 price all of a sudden $10,000."

 

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