Do you know how to spot a moving company scam? Here are 13 of the most common ones.

Scams are everywhere today. But some of them fall behind a veil of discretion, harder to recognize mainly because we need a service. And because legitimate, good, honest companies meet that need. But sprinkled in the mix of those amazing companies, a scam artist lurks. And one of the biggest, most surprising scam of all? Moving companies.

We spend time researching and being an educated buyer when purchasing expensive items like a television or couch set. That same tenacity needs to be given when hiring a moving company.

After all, they are moving your most valuable possessions. Dedicating time to hiring a quality moving company protects you from falling victim to a scam.

The majority of moving scams occur when crossing state lines. Not only because you venture across borders but also because Texas is huge! And recent data shows that moving company scams in the state of Texas are on the rise.

The state of Texas is home to a lot of people and at least a few bad moving companies.

The saying, “everything’s bigger in Texas” is accurate because Texas is, well, big. The landmass of Texas is 268,820 square miles. Not only is Texas big in mass form but the population of Texas is growing by the day. Over 28 million people live in Texas.

The larger the population, the more of a chance for you to engage with a shady business owner trying to take advantage of you. That is because unfortunately con artists flock to where the people are. And Texas boasts major cities.

So how do you know the difference between all of the wonderful movers in Texas and the few out there that swindle you of your money? There are a few common factors to easily spot the good from the bad.

No estimate

Always get a quote up front for your work and a rough estimate of how much it is going to cost to complete your move. A company not wanting to give you an estimate and simply charge you an hourly rate is a big red flag.

With traffic, different routes to take, and movers getting “lost” the hourly rate can double or triple what you’ve been quoted. And whatever estimate they offer, it needs to be in writing. If you get an estimate emailed to you, make sure it is sent from a company email address with the company’s name and information included in the estimate.

Check for branding

If the mover shows up at your house with an unmarked rental truck and movers without professional uniforms on, that should be a big red flag. After all, if you make your customers happy you will want to show off your name, identify your trucks, and have your crews wearing a uniform. Leaning toward a family owned mover or a nation-wide brand will work in your favor. You can trust them to be professional, branding their company, and confident in providing the best service.

Shipping containers

This newer scam involves selling you a large shipping container to put all your belongings in. While there are definitely legitimate companies here that do this, there are also newer companies who do not know what they are doing. It is very hard for an inexperienced person to quote you a price. Make sure the company you are dealing with has experience with hundreds of containers.

Hidden fees

Before you sign any contract you should read it, and moving is no exception. Some moving companies sneak hidden fees into a long and drawn out contract with a ton of fine print. By making it difficult to read the contract, they are hoping you do not actually read it in its entirety.

Moving companies that charge hidden fees should be avoided.

Another huge red flag is when the movers will hand you the contract and have you sign it the day they’re supposed to move you. Make sure to get the contract before the move date. Give yourself time to read it, sign it, and make a copy for your personal records.

*A few hidden fees to be on the lookout for: packing labor, packing supplies, assembly and reassembly of furniture, elevator fee, and disposable fees to name a few.

No real address

Google is your best friend when searching for moving companies. During your search, make sure that the company has a valid address, with valid directions to their offices.

If you see a PO Box address, consider this a warning sign.

Moving companies need a place to keep their moving trucks, if they don’t have a physical address to offer their clients then this is a flag and you should consider another company.

Charging for extras

Do they charge for blankets, wrap, and padding? If they do, that’s a bad idea and will get very expensive quickly. Keeping your items safe during a move should be part of the original estimate. It should not be a surprise charge on the day of the move. So, be sure to ask about any extra charges you may incur.

Holding goods hostage

Your possessions should not be a bartering chip. Be sure to read the contract to ensure that the moving company cannot hold your items if you cannot pay. This is an easy way for companies to quote you a smaller price up front, get your items loaded, and then tell you the price will be much higher than originally quoted.

The blank contract

Never never sign a blank contract or an estimate. While it is imperative that you get everything in writing, once you sign a contract you are making a commitment.

Do not trust the moving company that uses a blank template like this for a quote.

A major fee almost all moving companies have is a cancellation fee. And this fee can be expensive. If you back out of a contract that is blank then you are giving the company permission to charge you whatever they feel is the right price. Do not give them that power.

The name change

Millions of people move to Texas cities like Dallas, Austin, Houston, and San Antonio right now than ever before.

This allows for companies who struggle with customer service to hide their bad reputation by making superficial changes. And with the the vast number of people moving to major metropolitan areas, they prey on those not familiar with the local and state laws.

Look into the history of the company, how long they’ve been in business, and if their change in leadership, name, address is common place in their business doings.

Charging by the pound

According to a recent study, almost 600 people move to Texas every day. And movers are banking on your lack of knowledge and the stress of moving to talk you into thinking charging by the pound is a better deal. Your move is about the size of the house or apartment, not the weight of the items. A good moving company should be able to quote you based on a few direct questions without weighing your items.

Asking for a deposit

A moving company should never ask for a hefty deposit up front. This is an easy way for them to take your money and run.

A common practice most companies follow is keeping your check or credit card information on hold until the day of delivery. They will not charge you or cash your check (post date the check so they can’t deposit it early) until the move it complete.

The deposit should also go toward the price of the move. Do not let them charge your card or cash your check until after they complete the move. So, during your relocation process, check your account information and credit card balance regularly.

No license

In the state of Texas, all moving companies must have an active license with the Texas Department of Motor Vehicles.

If the company does not have a valid license in the state of Texas, this is a huge red flag. All licensed movers are required by law to provide a Rights and Responsibility brochure prior to moving your items.

If your mover does not provide you with this brochure, do not have them move your stuff. You absolutely must hire a licensed mover if you are going to trust them with your belongings.

No insurance

The company should be insured. If they are moving your vintage piano you better make sure they have the insurance to replace it if something were to happen. Every moving company should have insurance for such disasters.

Also, insurance companies should offer you insurance too. This can be a scam. Look into their insurance policy, your contract, and your own personal insurance. Depending on those factors it might be best to get their extra insurance. This extra insurance fee should be in your contract and a reasonable amount.

Scams are not a new thing. For example, in 1920, Charles Ponzi found he could make money using postal coupons to exploit the difference in international currency exchange rates.

He targeted hard working, middle class friends and neighbors to “buy in” to his business and guaranteed them a 50% return rate. Within 6 months, more than 30,000 people invested in his business with $15 million in notes in his company.

Scams are not new, thankfully that helps you see the warning signs coming.

With that kind of return, more people invested thus creating the highest earning pyramid scheme at the time. Charles could never make good on his return so he paid his earlier investors with the newer investors money.

Eventually, the well ran dry, people lost homes and pensions, and Ponzi was jailed multiple times before dying destitute in a hospital in Brazil. His scam was so renowned that they named all pyramid scams after him — Ponzi Scheme. And the biggest, most surprising scam of all? Moving companies.

But back to the reality of hiring a moving company. The most important thing you can do when hiring a mover in Texas? Read actual customer reviews.

The great thing about most customers — and Texas is no exception — is that they will share their story online. Don’t fall for a Ponzi scheme of a price looking too good to be true.

Because more likely than not, the price really is too good to be true. This makes it easier to tell if you are dealing with an experienced company with a track record of success.

Best of luck with your upcoming move.