You probably haven't heard or even are not aware of moving company scams. Nevertheless the moving industry seems to be much more scam-ridden than many other industries. Before we begin I just want to point out that is recommended moving yourself if possible, or using a you-pack/we-drive service. Although sometimes circumstances don't allow that so we will discuss some tips on avoiding moving company scams and how to find one you can trust. But first lets take a look what moving scam is and how it works.

Most moving companies are completely legit, however more than a few will try to trick you into paying a lot more money than you expected. Leaving normal transportation scratches aside, moving can become a big stress factor and pain if you run into a moving company scam. It starts with moving companies trying to beat each others low bid to move your possessions for you. Basic rules of competition that you would take advantage in most cases, but not in the moving industry. At least let the low bid not be your priority when choosing a moving company, because in the end you may get a double or triple than your estimated quote.

As mentioned before competition is usually a great thing for the customer, because of the lower prices the companies have to give in order to survive in the business. As the number of competitors was rising the prices for moving were falling, which meant that it became more difficult to make a profit. At this point some of them began holding your goods 'hostage' while they demanded that you pay some extra fees that have occurred during transportation or any similar trumped up lie. There was a case of a company who has given an estimate of $2000 for the transportation. The contract was more or less blank. The contract which has been signed by the customer had lots of room to add additional information and fees to it after it was signed. The estimate then doubled, and because the customer protested, they still hadn't delivered her goods six weeks later.

As you see one important factor in moving is the estimate. Most consumers believe that only one estimate exists and that is the one who gives you an estimated price which can however be double of the amount or half of the amount. In fact there are actually three types of estimates that are common in the moving industry. You should be aware of all of them;

Binding Not-To-Be-Exceeded - This true estimate is the preferred and most favorable for the customer. A basic understanding of it means that even if your actual weight exceeds the original written estimate, you still pay for only the amount of the estimate. But if your actual weight is less than the estimate, then you pay less than the amount of the estimate. A binding-not-to-exceed estimate can only get lower, not higher. If you can you should definitely choose this option!

Fixed Price Agreement - If you sign this you agree to pay the fixed amount of the binding written estimate whatever the actual weight in the end is. Risk to the costumer is that the moving company could overprice the estimate to get extra money for pounds that don't exist. The risk for the moving business is that the costumer could sneak in items that were hidden and not included on the original estimate. However the risk to the company is almost does not exist, because the truck driver has the right to "challenge" the binding estimate on loading day, before actually loading, if he thinks that the estimate is too low.

Non-Binding Agreement - You agree to pay for the actual weight, not the estimate, based on a set price per pound. The final bill could be higher or lower than the original written estimate, depending on the actual weight.

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Urban is the author of Moving Company Scams and Movers Scam