Thursday, March 12, 2009

Moving Nightmares - Scout Relocation

Leah Casey was living a dream. An empty dream. When we met her last month, she had been waiting two weeks for her belongings.

"We have been waiting," she said. "We've been waiting."

Casey was waiting -- and worrying -- because movers held her belongings hostage.

"They said, 'Ma'am, you owe us 14,500 dollars,'" she said. "I was in disbelief."

The mover demanded 14 thousand dollars, even though they signed a binding contract for just 21 hundred dollars.

"That sounded like a great deal," said Casey.

The mover refused to deliver anything until she paid the new price in full -- and in cash. We wanted to know why the price suddenly went up. Our sister station, KTVU-TV, paid a visit to Leah's movers, Scout Relocation of San Jose, California. The company refused to answer any questions. Now, state regulators there are now investigating.

So how can this happen? If you've got a signed contract promising you a certain price, how can a moving company just raise it and hold your items ransom until you pay? 7 On Your Side found out, it can happen because the law does little to stop it.

The Texas Department of Transportation regulates movers.

"That happens. It's not good. Very -- it's just not, not good at all," said Robert Anderson, TXDOT's interim head of motor carrier regulation.

Anderson admitted, there is no law stopping a moving company from holding onto your belongings, indefinitely, in a payment dispute.

"That's right. You're absolutely right," he said. "There's nothing that we can do to actually stop, prevent, or force that."

The police can't help you either.

"There's really not much we can do for them, because in a situation like that, it is a civil matter," said Sgt. Richard Stresing with the Austin Police Department.

Texas law says moving disputes must be settled in court, but that can take months.

"It's a form of extortion," said Sgt. Stresing, "but the way the legislature has written the laws on theft, there has to be something else to it other than the extortion -- the holding of the property because of a civil contract."

We asked TXDOT if consumers deserve more protection. After all, we're talking about all your belongings here. Anderson said no.

"We're not the ones who made the decision for the mover [customer]," he said. "This is a contract dispute. It's a contract dispute that must be handled by the courts."

According to the Southwest Movers Association, these kinds of moving nightmares are common.

"This is the kind of thing that we fight with on a daily basis," said SMA's president, John Esparza.

Esparza suggested filing a theft report with the police anyway. File it where the items were first picked up. Next, file a complaint with TXDOT, although, again, the agency's powers are limited.

"We don't have the enforcement power to go out there and grab the guy and shake him and you know, and actually, physically do anything," said TXDOT's Anderson.

If it's an out-of-state move, you have more options. Contact the US Department of Transportation. The feds have more leeway to force movers to deliver your items, but they can only intervene on interstate moves.

Since Leah Casey moved from California, she got the feds involved. Her belongings finally arrived the day we met her.

"I can't wait to break out the cuisinart and have the whole family sitting down, on a couch, not on the concrete floor," she told us as the moving van arrived.

But much of the furniture was damaged. Boxes full of valuables were crushed, and casey said, several items have permanent marker all over them.

"I think that once everything's settled, you know, whatever damage is on there, we're just going to have to live with it," she told us.

Most contracts list a "do not exceed" price. If it's going to cost more, the company must give you a written contract amendment before they leave with your items. If they don't, in Texas, it's a contract dispute that you'll have to sue over. But California goes a step further. There, it's a criminal violation.

KTVU Reporter: "If the carrier wants to charge more for whatever reason, and withholds the delivery of the merchandise, is that legal?" 
Julie Halligan, CA Public Utilities Commission: "That's not legal, no."

Police here in Texas say their hands are tied without change from state lawmakers.

"If people contact their state legislator, and press the issue, then it's possible it can be looked at," said Sgt. Stresing.

Meantime, Leah Casey is still unpacking what's left of her belongings. She'll spend months repairing and replacing them.

If you end up in court, go to small claims court if all your belongings are worth less than 10 thousand dollars. Otherwise, you'll have to go to civil court. 

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