What to Do if a Moving Company Scams You

Moving can be a stressful experience. Whether you're relocating across town or across the country, it’s an overwhelming task that requires meticulous planning. Unfortunately, when you hire a moving company, things don’t always go as smoothly as you hope. Sometimes, instead of helping you make the transition to your new home, movers can make things worse by scamming you — holding your belongings hostage, damaging your property, or charging you unexpected fees. So, what do you do if you fall victim to such a scam?

In this blog, we’ll discuss your legal rights if you’re scammed by a moving company, the common ways in which people get taken advantage of, and provide some practical tips on how to avoid falling into a scam in the first place.

Understanding Your Legal Rights

While most people know about the general rules of consumer protection, many are unaware of how these apply specifically to moving companies. In Ontario, moving services are regulated by the Ontario Consumer Protection Act (“CPA”), the Transportation Act, and provincial laws regarding the movement of goods.

If you’re dealing with a moving company, here are your main rights:

1. Contractual Agreement
   Every legitimate moving company should provide you with a contract outlining the services they’ll perform, including the details of the move, costs, and any additional fees that may arise. This is critical, as a legitimate company will have no problem putting the agreement in writing. If the moving company doesn’t provide a written contract or refuses to detail their terms and conditions, it’s a major red flag.

2. Right to Clear Pricing
   A legitimate moving company should provide you with a clear estimate upfront, especially if you’re moving across distances. The estimate should include all services and potential fees. Moving companies in Ontario must give you an estimate in writing (if you’re moving more than 100 kilometers), and if the final bill exceeds that estimate by more than 10%, they must explain the additional charges.

3. Protection Against Damages
   In Ontario, moving companies are required by law to take reasonable precautions to avoid damage to your property. If your items are damaged during the move, you have the right to claim compensation. This is especially relevant if you’ve purchased insurance or a damage waiver.

4. Right to Prompt Delivery
   The company must deliver your items within the time frame specified in the contract, or they risk legal action. If the company holds your belongings hostage or delays delivery without proper cause, this can be grounds for a legal claim.

5. Consumer Protection Act (“CPA”)
   Ontario’s CPA ensures that customers have access to accurate information and safeguards against misleading practices. If a moving company deceives you about services, prices, or terms, they are in violation of the CPA, and you may be entitled to a refund or compensation.

Common Types of Moving Scams

While most moving companies are reputable, some shady businesses engage in unscrupulous practices that can leave you stuck with unexpected bills or damaged property. Some of the most common scams include:

1. Holding Belongings Hostage: This is one of the most frustrating scams, where movers refuse to unload your items unless you pay an inflated bill. Often, this happens when the moving company gives you a low estimate, and then demands far more than what was originally agreed upon. In some cases, the company may claim that they "miscalculated" the weight of your belongings or accuse you of having more items than initially discussed.

2. Damage to Property: Moving companies are supposed to handle your belongings with care. However, some movers are negligent, and damage can occur. Unfortunately, many companies will try to avoid responsibility by either offering inadequate compensation or refusing to pay for repairs. Be sure to take detailed inventory before and after the move to hold them accountable for any damages. If you have valuable items, it’s also recommended to take photos of your inventory before and after the move for evidence.

3. Misleading or Hidden Fees: Hidden charges are another form of scam. Some companies might quote you an unusually low price but later tack on extra fees for things like fuel surcharges, packing materials, or elevator use. These fees can add up quickly, and if you're not aware of them upfront, you may be blindsided with an unexpectedly high bill.

4. False Advertising or Unlicensed Movers: Some moving companies are unlicensed or unregistered, which means they don’t have the proper insurance or training to handle your move safely. These companies may advertise low prices or offer deals that seem too good to be true. In the worst-case scenario, they might disappear with your belongings or cause significant damage.

What to Do if You’re Scammed by a Moving Company

If you find yourself the victim of a moving scam, it’s important to act quickly. Here’s what you can do:

1. Document Everything

Whether it’s a damaged item or an inflated bill, your first step should be to gather as much evidence as possible. Take photos of damaged property, record the details of the contract, and keep any receipts or correspondence with the moving company. This documentation will be essential when you pursue legal action.

2. Review the Contract

Carefully go over your contract to see if the moving company is violating any of the terms. If the company is charging you more than agreed upon or holding your belongings hostage, you have the right to dispute the charges.

3. Contact the Moving Company

Before escalating the issue, reach out to the company directly. In some cases, miscommunications or mistakes can lead to issues. Give the company a chance to resolve the problem. If they refuse to cooperate, you’ll need to take further steps.

4. File a Complaint with the Consumer Protection Ontario (CPO)

If you're dealing with a scam in Ontario, you can file a formal complaint with Consumer Protection Ontario. The CPO can investigate the issue, mediate between you and the company, and, in some cases, take legal action against the mover. You can file complaints online via their website or by phone.

5. Contact the Ontario Ministry of Transportation

If you believe that the moving company is not following the proper regulations, such as unlicensed activity, you can report them to the Ontario Ministry of Transportation. They regulate the licensing of moving companies and ensure that they follow the rules.

6. File a Lawsuit

If you are unable to resolve the issue with the company or through complaints, you can consider filing a lawsuit in small claims court, especially if the damages or charges are below the $35,000 limit in Ontario. If your losses exceed that amount, you might need to file in a higher court.

7. Contact the Police (in extreme cases)

If the moving company is refusing to return your property or is holding your belongings hostage, and you believe criminal activity is involved, you may need to contact the police.

How to Avoid Getting Scammed by a Moving Company

While it’s important to know your rights if you fall victim to a scam, the best approach is to take preventative steps to avoid being scammed in the first place. Here are some practical tips:

1. Do Your Research
   Always research moving companies thoroughly. Look for customer reviews and ratings on platforms like Google, Yelp, and Better Business Bureau (BBB). If a company has numerous negative reviews or unresolved complaints, steer clear.

2. Get Multiple Estimates
   Obtain written estimates from at least three different moving companies. This helps you get a sense of what a fair price is. Be cautious of companies that offer a quote that seems too low — they may try to increase the price once they have your belongings.

3. Verify Their Credentials
   Ensure the moving company is licensed, insured, and registered with appropriate authorities. In Ontario, moving companies must be licensed by the Ministry of Transportation, and you can check their credentials on the Ministry's website.

4. Don’t Pay Upfront
   A reputable moving company won’t ask for a large sum of money upfront. While some require a deposit, avoid any company that demands full payment before the move is completed. This is a common tactic used by scammers.

5. Trust Your Instincts
   If something feels off about the moving company — whether it’s a lack of professionalism, unclear pricing, or evasiveness about terms and conditions — don’t hesitate to walk away.

6. Check for Hidden Fees
   Be sure to ask about all potential fees, including extra charges for stairs, long carries, or delivery delays. Get everything in writing to avoid unexpected charges.

7. Insurance and Protection Ask the company if they offer insurance and what it covers. If they don’t, consider purchasing third-party insurance for additional peace of mind.

Dealing with a scammer moving company can be incredibly disheartening, but it’s important to know your legal rights and take action swiftly. By understanding the laws that protect you as a consumer, knowing the common signs of moving scams, and taking the proper steps to avoid fraud, you can ensure a much smoother and less stressful moving experience.

If you do find yourself in a situation where your belongings are held hostage or damaged, remember that you have the legal right to dispute charges, demand compensation, and seek recourse. With the right knowledge and action, you can stand up for yourself and get the justice you deserve.

Remember, you’re not alone in this. Many people fall victim to moving scams each year, but you can avoid the worst of it by doing your research, staying vigilant, and knowing what to do when things go wrong. Best of luck with your move!