Moving brokers won’t be able to provide lowball estimates and sell move jobs to companies that show up to consumers’ homes, load their goods and demand more money if two Florida bills become law this spring.
There’s just one problem: The bill would affect fewer than 40 companies registered as moving brokers for in-state moves.
State-to-state movers and brokers, which generate a large number of complaints to agencies like the Better Business Bureau, are regulated by the federal government and would not be affected.
Florida is a hotbed for moving brokers, with many more registered for state-to-state moves than in-state jobs.
Companies can easily get started with just a website and phone number and require no trucks or actual movers, authorities say.
After paying deposits to moving brokers that hold themselves out as moving and storage companies, hundreds of consumers have complained to authorities in states and the federal government in recent years that they’ve been scammed by unknown companies who show up at their door on moving day.
First, the companies load all of the shipper’s goods on their trucks, then demand thousands of dollars over the brokers’ estimates to finish the job. If customers refuse to pay, the moving companies say they’ll drop their goods into storage units until their demands are met.
Often, customers who agree to pay the higher fees say the moving companies fail to show up on the agreed-upon date, and brokers refuse to take their calls or tell them when their goods will show up.
A company registered as an in-state mover is listed on the Better Business Bureau website as being in business for just three years but generated more than 200 customer complaints during that time. Twenty of the complaints were submitted over November and December. Nearly all of the complaints say the movers demanded additional money after the broker provided contracts that promised to move household goods for $1,000 to $5,000.
“After they loaded my items they presented me with a new contract, which is close to three times the binding contract,” a consumer said in December. “At the time I stated that I was not in agreement with the new contract and asked them to remove the items off the truck and they refused, stat(ing) that they would keep my items which are valued at 200k. Unless I signed.”
Some movers support reforms
Bills in the state House and Senate aim to address the problems by increasing regulation of the industry.
Gloria Pugh, chair of the Professional Movers Association of Florida and CEO of Amwat Moving Warehousing and Storage in Tallahassee, says the legislation was spearheaded by Sen. Ed Hooper, a Republican representing parts of Pasco and Pinellas counties.
Hooper filed a new version this year of a bill that failed to gain traction in 2023.
The House sponsor, Rep. Allison Tant, a Democrat who represents Madison and parts of Jefferson and Leon counties, told the House Regulatory Reform & Economic Development Subcommittee on Jan. 24 that she agreed to file the bill at Pugh’s request.
“She told me that too many people don’t know the difference between a moving broker and a moving company,” Tant said.
Pugh told the committee that state laws governing household moves need revision because they fail to prohibit brokers from preparing estimates and contracts that are too easy for movers to ignore when they show up.
The bill’s requirement that estimates and contracts be prepared by moving companies is a “crucial distinction,” Pugh said, “that ensures accountability and accuracy in service costs.”
“The goal is to prevent situations where consumers are deceived into thinking a moving broker directly provides services, only to face unexpected demands from an unknown and often unregistered moving company on moving day.”
Rep. Kimberly Daniels, a Democrat representing part of Duval County and co-sponsor of the House bill, said the bills, if enacted, would “put pressure on folks not to play games like this with the items and possessions that are everything in some people’s lives.”
What the bills would do
Major provisions include:
- Banning moving brokers from, on their own, providing estimates of the consumer’s cost for the move. Instead, binding estimates would have to be signed by the moving companies that would actually do the work.
- Requiring moving brokers to identify themselves as brokers, and not movers, on their websites and in any document provided to consumers.
- Requiring moving brokers to provide the Department of Agriculture and Consumer Services a complete list of movers that they are contracted or affiliated with, including names, addresses, phone numbers, email addresses, state registration numbers, and the names of any of the movers’ owners, corporate officers and directors.
- Barring anyone from offering services as a moving broker or a mover if not registered with the department.
- Movers that operate two or fewer vehicles and do not maintain liability insurance coverage would have to obtain a $50,000 performance bond or certificate of deposit. Moving brokers would also be required to maintain one of the coverages.
- Estimates would have to include itemized breakdowns of all goods to be shipped, costs of all services to be provided, names, phone numbers and physical addresses for both movers and moving brokers, addresses to where the goods will be delivered, and addresses of any locations where goods will be stored pending further transportation.
- Estimates would also break down which fees will be collected by the moving broker and which will go to the moving company.
Companies that fail to register would be subject to an immediate cease-and-desist order and court injunctions prohibiting them from operating until they comply and pay a civil penalty of up to $5,000.
Registrations would be suspended if the moving broker or moving company is charged with fraud, theft, larceny, embezzlement, or any other crime arising from the movement of household goods.
The bills cleared the last of six House and Senate committees on Thursday and will now be forwarded to votes by the full chambers. If passed and signed by the governor, they would become law on July 1.
Yet the bills would affect moving brokers licensed by the department to coordinate in-state moves. Just 37 such in-state movers are currently licensed in the state.
The federal government has no law barring moving brokers from developing estimates and contracts for state-to-state moves.
A database maintained by the Federal Motor Carrier Safety Administration — ai.fmcsa,dot.gov/hhg — lists 2,579 companies as movers or moving brokers in Florida, though clicking on the names of many lead to a page stating that the company is not authorized by the agency to arrange or transport goods. Of them, 956 are listed as owning no trucks — a recognized sign of a potential broker.
The vast majority with no trucks were registered in South Florida, including 57 in West Palm Beach, 35 in Pompano Beach, 60 in Miami, 37 in Hollywood, 34 in Boynton Beach, 74 in Boca Raton, and 87 in Fort Lauderdale.
Federal authorities increase enforcement, partner with states
The FMCSA in April 2023 announced a nationwide crackdown on moving scams in response to a growing number of complaints and media accounts nationwide.
In July, the agency announced the results of what it called a three-week effort:
After more than 100 investigations across 16 states, “this targeted work resulted in over 60 enforcement actions that may lead to the revocation of operating authority for some movers and brokers.” the agency said.
No additional news releases have been issued on the subject by the FMCSA and the agency did not respond to a request for more information about its efforts since July.
Florida officials have been chipping away at the problem in recent years.
In December 2022, Attorney General Ashley Moody announced lawsuits filed in Broward County against three individuals, two holding companies and multiple “fraudulent” brokers that Moody’s office said conducted business under multiple names.
The entities “acted as a common enterprise to deceive more than 400 Floridians into believing the company professionally handled moving services and promised to provide refunds if anything went wrong,” a news release about the action said. “Instead, the companies hired third parties to complete the moving services at subpar quality and refused to provide refunds.”
The office entered into a consent agreement in which one of the targeted companies, National American Van Lines, agreed to pay $65,000 in restitution and a $10,000 fine in exchange for not having to admit or deny wrongdoing. Owners of the company also agreed that they would no longer operate or advertise moving services.
Litigation against the other companies in the case, all of which have denied Moody’s accusations, continues, according to court records.
Prior to the action, Moody’s office announced recovering about $27 million in fines and restitution against 19 different firms. Some of the results stemmed from lawsuits filed by Moody’s predecessor, Pam Bondi, in 2019.
The FMCSA in July said Florida was one of 11 states that have signed onto a partnership to “maximize the impact of collective efforts” against moving scammers.
Teresa Murray, director of the Consumer Watchdog office at the U.S. Public Interest Research Group, said she hopes the law, if it is enacted, will help generate awareness of the issue and convince consumers to investigate moving brokers more carefully before handing over their money or their stuff.
“Consumers don’t know to check to see if a broker is properly licensed and to make sure a moving company is licensed and bonded. That’s my frustration,” she said.
Barring moving brokers from issuing estimates or contracts across the country would be a good idea, Murray said.
Pugh said on Friday that she understood the proposed state law would not be able to regulate companies that provide state-to-state moves. But she said she’s anxious to see the law enacted.
“It’s just the start,” she said.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at [email protected].
