The busiest season for movers and these scams is between the month of May and Labor Day. Our personal finance contributor discusses the ways some moving companies rip off their customers, and how people can avoid these scams.
BRAND: Moving, it's right up there with the big stress makers - divorce, the death of a loved one, a change of job status. And for those planning a move there's another to be worried: scams by unscrupulous movers can end up costing you a lot of money. Here is DAY TO DAY's personal finance contributor Michelle Singletary to help us out. Hi, Michelle.</s>MICHELLE SINGLETARY: Hi.</s>BRAND: Well, what are some of the most common moving scams?</s>MICHELLE SINGLETARY: In the most classic scam, a moving company will give you a low-ball estimate. But then, when it comes time to pay, after they've packed up all your stuff and it's on the truck, then they present you with an estimate that can be triple or quadruple the estimate that they originally quoted you. And at that point they really are holding your items hostage. About 15 percent of the consumer complaints that go into the government are about movers who are holding or held their items hostage.</s>BRAND: And are there any laws or anyone overseeing these moving companies to prevent that from happening?</s>MICHELLE SINGLETARY: The interstate movers, those who move you from state to state, are regulated by the Department of Transportation Federal Motor Carrier Safety Administration. The problem is, once they've got your stuff, there's nothing the government can do. It's only after the fact that you can maybe try to get some relief, and even then it's really tough.</s>MICHELLE SINGLETARY: For example, if you get a binding estimate, meaning they've got to stick by that, they can't hold your items hostage if you pay 100 percent of the charges in that binding estimate. Now, you can get what's called a non-bonding estimate where they can charge you extra if you've asked for extra things or your items weigh more than they expected. And even then you are only required to pay 110 percent of that.</s>MICHELLE SINGLETARY: Here's the problem. Once it's on the truck, the state authorities aren't going to get involved, you can't call the federal government and say come, these people are holding my stuff hostage.</s>BRAND: So how can you protect yourself from a rogue mover?</s>MICHELLE SINGLETARY: You know what, do some research. You want to get an estimate by someone who comes to your home. If they try to give it you over the phone, that is a huge red flag. You also want to be sure that they give you an estimate based on the weight. One source that I found incredibly useful is movingscam.com, which is a Web site that provides consumer tips. You can also go to the Department of Transportation pamphlet that the movers were supposed to give you called your rights and responsibilities when you move. It's critical that you get this and read this. And lastly, there's one other source by the association that represents interstate movers, and you would go to moving.org.</s>BRAND: Yeah, in this case it's often best to go with those big, nationally recognized names, right?</s>MICHELLE SINGLETARY: Sometimes it is. I mean, absolutely, because, you know, you've got the history of the company, you know, they're a big name. For one thing, you want to be sure that they're registered. All interstate movers have to be registered. If you go to that Web site for the Motor Carrier Safety Administration and they're not registered, huge red flag, don't hire them.</s>MICHELLE SINGLETARY: And listen, you know I'm a cheap person, you know I'm a penny pincher, but when it comes to this particular thing, cheap is not always good. If you get a low-ball estimate and it just - you're thinking, ooh, this is great, that's a red flag.</s>BRAND: Thank you, Michelle.</s>MICHELLE SINGLETARY: You're welcome.</s>BRAND: Michelle Singletary, DAY TO DAY's personal finance contributor. She also writes the nationally syndicated column, "The Color of Money." And Michelle has an NPR podcast. You can download it for free. Just go to npr.org/colorofmoney, and color of money is all one word.</s>COHEN: Don't move. NPR's DAY TO DAY continues.