WHAT CAN MOVERS LEGALLY TAKE AS DEPOSIT DURING A PCS MOVE? HOW TO AVOID SCAMS

Where there’s legitimate money to be made, sadly, there are also opportunities for fraud. Moving deposit scams are on the rise and continue to target military families when PCSing. Legally, movers can take a deposit but if it’s a very large amount or gathered under shady circumstances, you may be dealing with fraud. Deposits help reserve services and establish trust between both parties. Learn more about potential scams and how to protect yourself when PCSing.

Mover Deposit Scams and Fraud

They come in many different forms but mover deposit scams are a growing problem.

For years this type of fraud has been rising significantly across the United States and military families are at risk when PCSing.

Sometimes it’s a classic bait-and-switch marketing play and others will simply take your cash only to never be seen or heard from again.

No matter what type of scam, it’s important to understand what they look like and what to avoid. Here’s what your family should keep an eye out for when moving:

Typical Online Red Flags

Just like any other business, it’s important to look at the simple things you would check out for any company when inquiring about their services.

This means having a physical address, contact information, positive, realistic online reviews, and more.

You’ll also want to inquire about their licenses and insurance. Movers who can’t or refuse to show you this information are likely a fraud.

Asking for a Large Deposit

Simply asking for an unusually large deposit upfront can be a sign of mover deposit fraud.

Reputable companies are going to have reasonable deposits, explain their amount, and will be upfront about the costs in a professional manner.

How far you’re moving, the size of your move, and when you need to move can affect the price; however, if the deposit is suspiciously large, it’s best to err on the side of caution.

Cash Only Deposits

When you do find a company that is asking for a deposit, they’re likely going to want a paper trail. Even if they do accept cash, it won’t be the only option.

If a company is only taking deposits in cash, this can be a warning sign that they’re going to take your money and run.

Incomplete Estimates/Missing Documentation

Estimates you receive should be in writing, and complete. Additionally, all of the documentation should be provided to you clearly and professionally.

If the company you’re dealing with doesn’t want to provide you with a written contract that has explicit details about the deposit and your terms, then it could be a scam.

Low Quotes Too Good to Be True

Moving deposit frauds can also present themselves when there’s an opportunity that is too good to be true. This is a trick to pull customers in only to raise the deposit or total cost amount once you’re committed.

Even if it’s a legitimate company simply using shady marketing techniques, it’s better to avoid such movers when PCSing.

High-Pressure Sales Situations

Finally, if you are dealing with a company that is making the idea of paying a large deposit urgent or placing pressure on you to get the deal done, this is a major red flag. Note that this is a common fraud committed during busy moving seasons.

Types of Moving Deposits

When PCSing, if you are asked to place a moving deposit, there are different types that you may run into depending on the company:

• Flat fees are deposits that are fixed regardless of how much your overall move costs. You pay this upfront.

• Some companies require percentage-based moving deposits that will look at your overall cost and charge you a portion as the deposit. Typically, 15% to 20%.

• Similarly, some will use this method but it’s included in your overall cost as a portion of your bill. This is the most common method of moving deposits.

• Sliding scale deposits will look at the variables that affect the cost of your move and charge you accordingly.

• Reservation fees may also apply if you need things moved at a certain time, but keep in mind that these are often separate charges.

Deposits are either refundable or non-refundable depending on the terms of your contract and the company you use. Be sure to read your contract carefully to understand which applies to your move.

Tips for Avoiding Moving Deposit Scams

When PCSing, families have enough to worry about. The last thing you need is to add moving deposit scams to your list.

However, there are some easy ways to help mitigate your risk and enjoy a smooth moving experience:

• Do research and only use legitimate movers with positive reviews, contact information, a physical location, licenses, insurance, etc.

• Remember to research potential scams and red flags to avoid fraud.

• Always double-check the terms and conditions of your moving contract’s deposit before paying and never pay in cash.

• If you face a large deposit (anything over $500), you should consider using another company. Depending on your move, a few hundred bucks might be reasonable but even then, do your research.

You can find the status of mover’s licenses by checking through the Federal Motor Carrier Safety Administration (FMCSA).

Service members deserve to be protected from fraud. Be sure to know what to look for and how to avoid moving deposit scams when your family receives your PCS order.

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