Congressman Would Crack Down on Rogue Movers

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WASHINGTON, July 22, 2003 -- A Wisconsin Congressman has introduced legislation to allow individuals or states to take action under state consumer protection laws against illegitimate interstate household movers.

Rep. Petri

"While the vast majority of moving companies operate in a fair, open and honest way, consumers are facing an increasing problem with rogue movers," Rep. Tom Petri (R-Wis.), Chairman of the Highways, Transit and Pipeline Subcommittee, said.

"One of the most egregious practices of scam movers is the 'hostage goods' situation, where a mover low-balls an estimate, loads the consumer's goods onto his truck, drives off, and then refuses to deliver the goods until paid an amount in cash that can be up to four or five times the amount of the original estimate - in strict violation of federal regulations."

"Several victims have gone months without knowing where their clothes, furniture, photo albums, family keepsakes and the rest are located. And yet there is little the consumer can do," Petri said.

Petri said that state and local authorities frequently avoid moving disputes as various courts have ruled that they have no jurisdiction over interstate moves. Meanwhile, the federal government lacks the manpower and resources to respond adequately at the local level.

In response, Petri's Securing Consumers' Assurance in Moving (SCAM) Act of 2003 would clarify federal law to make it clear that individuals can sue rogue operators, and to allow states to become enforcement partners with the U.S. Transportation Department.

The SCAM Act will also establish new fines for carriers who hold household goods hostage, and for other consumer violations. The Act would also increase the availability of consumer information regarding interstate movers.

The measure was referred to the Subcommittee on Highways, Transit and Pipelines, where it is awaiting action.

Provisions of the bill include:

Consumer Protection

• Provides that an individual or State may enforce a State consumer protection law with respect to interstate movers.
• Requires DOT within 90 days to establish a working group of State attorneys general, consumer agencies, and Federal and local law enforcement to coordinate efforts, exchange of information.
• Requires DOT review of current regulations regarding insurance requirements to ensure they provide adequate protection for consumers.

Consumer Information

• DOT must establish a consumer complaint data base regarding interstate movers and make it accessible to public. Carriers also must submit on semi-annual basis information on complaints and loss and damage claims.
• Better consumer information must be made available on the DOT Web site and on Web sites of movers and brokers.

Federal Penalties (enforced by DOT)

• Hostage Goods: minimum of $10,000 fine and Secretary may suspend carrier's operating authority for up to 6 months. Criminal penalties of fines and imprisonment for not more than 2 years.
• Operating without DOT Registration: Civil penalty of not less than $25,000
• Brokers: Civil penalty of not less than $10,000 if a broker makes an estimate before entering into an agreement with a carrier.

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