What Fraudulent Moving Companies Hide and How to Spot Them
Unfortunately for consumers and for legitimate businesses, which see the principle of free competition undermined, more and more sectors are experiencing fraudulent individuals or organizations operating without any guarantees, offering services similar to those of professionals who comply with current regulations. One of the most affected sectors is moving, which is why we want to detail a series of key elements that will allow you to identify them.
Individuals or organizations that fraudulently offer moving services in the free market leave their clients defenseless against any contingency and harm other moving companies in terms of image, respectability, and revenue.
How to Identify a Moving Company That Operates Fraudulently?
Abnormally Low Prices
In Spain, there are various organizations that group companies in the moving sector. One of these organizations is FEDEM (Spanish Federation of Moving Companies). This entity has a directory on its website, organized by autonomous communities, listing its associated companies, and also offers the possibility to request a quote on the same page.
The cost of a moving service is based on standard rates, on which each company can offer more or less substantial discounts if they deem it appropriate. However, if the price offered to you is abnormally low, it’s wise to be suspicious. The correct approach, before hiring a service with any company not associated with FEDEM, is to request a quote from this entity and compare it with the one offered by the provider you intend to work with. If the difference is excessive, you might be dealing with a moving company that operates fraudulently.
Lack of Documentation
Before hiring any type of service, it’s standard for the client to receive a written quote and for the provider to have visited the property subject to the move. It’s also necessary for both parties involved (provider and client) to sign a contract and for the moving company to take out insurance to protect the properties it will transport. If all of this is not provided in writing, if they refuse to issue an invoice, or if they demand cash payment, these are other red flags.
They Make Excuses When We Want to See Their Facilities
One of the most common requests from a client is to see the facilities of the company they are hiring. In the case of moves with storage services, this is especially important because it is in these facilities that the belongings will be stored until they are installed in the new home or office. If the provider makes excuses when you ask to visit their facilities, it’s time to start being suspicious.
Personnel, Vehicles, and Equipment Are Not Properly Identified
It is common for any moving company to have properly branded vehicles, and for personnel to wear corporate uniforms adapted to the occupational risks of their activity. Clients are sometimes unaware, but if a worker suffers a workplace accident inside their home, responsibility could fall on the client themselves if the contracted company is fraudulent and does not have occupational risk prevention measures for the personnel performing the service.
It is also common for clients to be given boxes identified with the company’s name to pack their belongings if needed.
Behind a fraudulent moving company, there can be anything from individuals working in the sector who don’t meet their Social Security and tax obligations, to individuals whose sole intention is to burglarize homes or offices. Therefore, before hiring any type of service, it’s advisable to take due precautions. Only a professional, solvent, efficient company that complies with current labor and tax regulations is capable of ensuring your move is professional and offers a minimum of guarantees against potential setbacks.
