While most moving companies are reputable businesses that do quality work, there are some that attempt to take advantage of clients through fraudulent practices. Follow these guidelines to protect yourself against moving fraud:
Get a written estimate from several movers. Some companies quote a low price to get a contract--and later ask for more money before they remove your belongings from their truck.
Make sure the mover has insurance and is licensed by the proper authority.
For moves from one state to another, a U.S. Department of Transportation (DOT) number is issued by the Federal Motor Carrier Safety Administration (FMCSA). You can search for a registered mover through the FMCSA.
Check the mover's record. You can find out the mover's complaint history with local consumer advocacy organizations, such as the Better Business Bureau.
File a Complaint
If you have a dispute with a moving company, you should file a complaint with the Federal Motor Carrier Safety Administration (FMCSA). Note: Moving company complaints handled by the FMCSA must cross state lines, but can be reported at any time.
Dishonest companies or individuals sometimes target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their homes. Scam operators like this promise to help you keep your home or sell your home without having to go into foreclosure, for a fee. However, they rarely deliver on what they promised.
These scam operators find potential victims in several ways:
Advertise online and in local publications
Contact people whose homes appear in the foreclosure notices (they can easily find these notices online or in a local newspaper)
Most mortgage professionals are trustworthy and provide a valuable service, expanding access to capital for previously underserved borrowers to buy or refinance their homes. But dishonest or "predatory" lenders do exist and engage in practices that increase the chances of borrowers losing their homes to foreclosure. For information about loan fraud and advice to prevent it, refer to the information below.
What Is Predatory Lending?
Predatory lenders, appraisers, mortgage brokers and home improvement contractors could use any of these tactics to take away your home or investments:
Sell properties for much more than they are worth using false appraisals.
Encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan.
Knowingly lend more money than a borrower can afford to repay.
Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
Charge fees for unnecessary or nonexistent products and services.
Avoid Predatory Loans by Being a Smart Consumer
To avoid becoming a victim of predatory lending or loan fraud, you need to understand the home buying process and be a smart consumer.
Before you buy a home, attend a homeownership education course offered by a U.S. Department of Housing and Urban Development (HUD)-approved, non-profit counseling agency.
Interview several real estate professionals (agents), and ask for and check references before you select one to help you buy or sell a home.
Get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
Hire a qualified and licensed home inspector to carefully inspect the property before you are obligated to buy. Determine whether you or the seller will be responsible for paying for the repairs.
Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.