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AUSTIN, TX - A lack of adequate consumer safeguards can make using a household goods moving company within Texas a risky proposal both for a family's finances and its belongings, according to a report released today by the Southwest Regional Office of Consumers Union, publisher of Consumer Reports.
The report - "Miles and Miles of Texas: Moving Across the Lonestar State" - found wide variations in service and costs, with some of the larger and better known companies having the worst claim records. It also found a public often confused and unaware of its rights and responsibilities in the moving process.
According to the report, approximately one in three moves with Mayflower of Texas and Bekins Moving and Storage of Texas resulted in the consumer filing a claim or in the final charge exceeding the estimate by more than 10 percent. Some companies, however, fared comparatively well. For example, Roadrunner Moving and Storage and Hill Grain Inc. reported less than 5 percent of their moves as problem moves. Overall, 12 percent of moves in Texas resulted in either a claim or additional charges of at least 10 percent over the estimate.
"While it appears moves with many companies go smoothly, some result in considerable damage to consumer goods or charges much higher than the estimate," said Janee Briesemeister, a Consumers Union senior policy analyst. "Those consumers who do file claims often find the process slow and frustrating. We believe necessary safeguards should be put in place to hold moving companies accountable for their customers' property and satisfaction."
On average, moving eats up a sizable chunk of a family's budget. Consumers pay at least $45 million annually to the top 10 moving companies for moves within the state of Texas. The average cost for an interstate move by members of the American Movers Conference in 1995 was $3,669.
For the report, Consumers Union reviewed consumer complaints and company performance statistics filed by 87 movers with the Texas Department of Transportation (TXDoT). Also, it contacted six moving companies from the Yellow Pages and asked them to estimate the cost of a household move from Austin to Houston. Again, the estimates varied considerably - from $1,100 to $2,400 -- and the phone estimates were normally lower than the final estimate.
Moving companies in Texas are not required to provide a binding estimate. Some offer non-binding estimates only, which can be increased at delivery by hundreds or thousands of dollars more than the original estimate, up to a maximum tariff filed by each mover with TXDoT. The agency's rules require consumers to pay only 110 percent of the estimate at the time the goods are delivered. If there is a balance exceeding 110 percent of the estimate, it must be paid within 30 days of delivery.
"Shopping around is difficult when movers are not required to give you a binding estimate," Briesemeister said. "The problem is further aggravated because consumers often don't understand the difference between binding and non-binding estimates." The final charge after a non-binding estimate, for example, can escalate up to a maximum tariff rate. But this rate is set by the industry and TXDoT has no legal authority to ensure that the tariff is reasonable.
The report also revealed a wide range in the average time movers take to resolve claims. Current regulations allow companies up to 180 days to settle claims before customers can request help directly from TxDOT. But while the average time for a moving company to resolve a claim is about 30 days, several companies reported it takes them on average 60 to 120 days.
Additionally, the process is cumbersome and the playing field between movers and consumers is uneven. First, a consumer must file a written complaint with his or her moving company. If the dispute is not resolved within 120 days, the consumer can request non-binding arbitration at the moving company's expense. When not resolved satisfactorily, a consumer can request non-binding arbitration at TXDoT's expense. Legal action in a court of law is a consumer's last recourse if nothing else works.
CU's report also found that consumers sometimes do not really know which company will actually do their move and which one can be held responsible in case of a claim. This is because when a national van line is hired to do a move within Texas, the work is actually done by an independent truck owner or local moving company acting as an agent. Only the company named in the contract - called the "bill of lading" - can be held responsible for the household goods and the customer's satisfaction.
Consumers Union is participating in a newly appointed advisory committee charged with reviewing the consumer protection rules applicable to all movers. The rules will now include movers using trucks weighing less than 26,000 pounds ("apartment movers"), which were previously unregulated.
Consumers Union recommends that existing rules be strengthened as follows:
**COPIES OF THE REPORT ARE AVAILABLE UPON REQUEST BY CALLING (512) 477-4431.
