New Jersey residents have the second highest number of such scams in the country

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Many Americans like to move. It seems to be a deeply ingrained cultural phenomenon. According to statistics, the average American moves about 11 times in his or her life, and many people migrate frequently between different cities and states. Whether in pursuit of better job opportunities, quality educational resources, or searching for the ideal living environment, moving has become a norm in the United States.

Moving is an important task for any family, but in New Jersey, more and more residents are finding that moving is more than just a simple transition – it can become a potential risk. With moving scams on the rise, New Jersey residents are facing unprecedented challenges when hiring moving companies.

Second in the United States

Moving is stressful enough on its own, imagine finding out that many of your belongings have been damaged or stolen, or being forced to pay much more than you were told the move would cost.

A new national survey by HireAHelper.com found that moving scams continue to plague New Jersey residents at an alarming rate. New Jersey currently has the second highest rate of moving fraud in the United States, behind Florida.

Data compiled by the site shows that for every 442 moves in New Jersey, there is one move scam.

These scams are costly. Nationwide, moving scams are expected to cost consumers $32.2 million in 2024. That’s a 5 percent increase from 2023. On an individual level, the cost of such scams has increased by 23 percent this year. Victims pay an average of $431 per scam. Often, victims lose much more than that.

Protect oneself

The most common complaints are about fees customers feel they have to pay, or movers who refuse to adhere to a pre-agreed binding valuation, often asking for more than 10 percent more than the agreed amount.

In the face of frequent moving scams, consumers should take the necessary precautions. First, make sure to choose a licensed, legal moving company. New Jersey requires that all moving companies must be registered with the Department of Consumer Affairs and hold the appropriate licenses.

There are three types of licenses:

PM: It’s just a mobile license

PW: License for storage only

PC: Combined license allowing handling and storage.

If you are unsure whether the moving company is qualified, you can call the New Jersey Department of Consumer Affairs at (973) 504-6442 or 6512 to check the license status of the movers or warehouse keeper.

Second, when obtaining a moving estimate, it is recommended to request a written estimate and ensure that the estimate is transparent and accurate. In addition, consumers should understand payment methods and confirm payment details before moving to avoid being forced to pay additional fees.

Specifically, consumers should be aware of:

Estimation process:

Before moving, the consumer must obtain a written estimate, and the estimate must be clear and easy to read. Moving companies should also present relevant brochures to ensure that consumers are aware of their rights. Movers must also present a copy of a state-approved pamphlet entitled “Important Notice to Consumers Causing Use of Public Movers.” The calculation of the estimate itself is based on the moving company’s rate standard, which is an official rate and fee schedule, copies of which are kept at the moving company’s headquarters and the Department of Consumer Affairs.

Binding valuation:

Consumers can ask the moving company for a binding estimate, which will help fix moving costs and avoid additional charges. Binding appraisals (also known as flat rate, fixed rate, or no more than appraisals) have been legal in New Jersey since September 1998, and you can ask a moving company to provide a binding appraisal, but the moving company is not legally obligated to provide an appraisal. Unlike standard appraisals, movers may charge more than their tariff price in binding appraisals. The advantage of this is that the mover cannot charge more than the total appraised value unless he is required to provide additional moving or additional services not covered by the appraised value.

Payment method:

Consumers should confirm payment methods before moving, and many moving companies require payment in cash or certified checks.

Fraud prevention

In order to further prevent moving fraud, consumers should compare offers, carefully study moving companies and read their customer reviews. Here are some specific precautions to take:

Shop around:

Compare multiple offers to avoid scams and secure a deal. Beware of quotes that are too low or too high, lack of specifics, no written contract, and too high a down payment.

Research moving companies:

Legitimate moving companies often have websites and are listed on platforms such as Yelp or HireAHelper. A lack of online presence or frequent name changes could indicate that the company is suspicious.

Keep a detailed list:

Create a detailed list of packed items and consider taking photos to prevent theft and identify lost items after you move.

Check out the reviews:

Reading what previous customers have said about the moving company you are considering can give you an idea of how they are performing.

Protect valuables:

Consumers are strongly advised to transfer any money, jewellery and personal documents themselves and to take out appropriate insurance for valuables. Such items are not covered under the terms of the Order of Service and most types of insurance.

Consider insurance:

According to the New Jersey Department of Consumer Affairs, the legal minimum liability for movers in New Jersey is $0.60 per pound per item. This goes into effect automatically for all in-state moves and applies in most cases unless the goods have been packed by the consumer. For example, if a 6-pound vase is damaged, the consumer is legally entitled to $3.60 (6 pounds X $0.60). It is recommended to discuss with an insurance agent the amount and type of insurance you should purchase and the deductible.

Choice of self-storage facilities and PODS:

Although the self-storage industry and portable on-demand storage (PODS) are not regulated by the state, consumers should read the terms carefully when signing contracts, especially those regarding fees and disposal of goods.

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