USMPO & FMCSA
4315 50th Street NW
Suite 100
Washington, DC 20016
ARBITRATION PROGRAM
Federal law requires arbitration for moving companies when customer disputes arise. The Federal Motor Carrier Safety Administration (FMSCA) also stipulates that interstate moving businesses wishing to renew their license and Motor Carrier Number with the U.S. Department of Transportation (DOT) must show proof of participation in an approved arbitration program for resolving consumer complaints.
In the moving industry, disputes can often arise between a company and their customer.
The most common disputes a consumer shipper can have with a moving company will involve issues of damages and missing items, overcharges for services, and failure to deliver on time. The U.S. Moving Protection Organization is here as a mediator to resolve conflicts between mover and shipper before they escalate.
Shippers have several options to resolve the conflicts and disputes with a moving company. The best method for resolving the dispute is direct discussion with moving company customer service department. A legitimate moving company will have a customer service department which can address and help resolve disputes. In most cases, any issues or disputes can be resolved as a matter of customer service. However, when an issue cannot be resolved through the normal customer service methods, a consumer may wish to look to other means to address the issues.
When considering alternative approaches to address and resolve a dispute, a shipper may consider filing a lawsuit, complaining to the Federal Motor Carrier Safety Administration, or the attorney general. These methods will not only effect your companies operating status, but also damage your business reputation which make it increasingly difficult to sustain a successful brand reputation
In the interstate moving industry, the FMCSA requires that each moving company a neutral arbitration program in place to resolve disputes and claims. Neutral arbitration can serve as a cost effective and quick alternative to traditional litigation. Additionally, neutral arbitration is more informal than court litigation and a consumer shipper may be able to navigate the arbitration process without hiring an attorney.
Federal law governing interstate shipments of household goods under 49 CFR § 375.211 provides that an interstate moving company must have a program in place to provide shippers with an arbitration alternative to litigation. Arbitration must be available for all claims involving property loss, property damage, and disputes over charges for services. Moving companies must provide written notice of arbitration to shippers. A moving company must provide each potential consumer shipper with a written summary of the arbitration program prior to the order for service being issued.
What is Arbitration?
Interstate moving companies must have in place a neutral arbitration program, administered through an independent arbitration service provider. The program must be designed to give neither the moving company nor the consumer shipper any special advantage. Arbitration may provide a faster and more cost-effective method of obtaining a final and binding resolution of a dispute that cannot be resolved through direct or assisted negotiations.
Can a Mover Be at Risk Without an Arbitration Program?
Interstate moving companies that decide to forgo an arbitration program leave themselves vulnerable. Your business could receive a hefty fine if an audit or inspection uncovers a 49 CFR § 375.211 violation. You also won't have the option of settling a case quickly and discreetly instead of going through an expensive, prolonged court trial.
Benefits of Arbitration:
Less complex: The arbitration process is less complicated than a court trial. Litigation requires filing multiple documents and motions and attending numerous hearings. Arbitration features simplified rules of evidence and a more streamlined hearing process.
Impartial: Both sides pick the arbitrator that will hear the case. This mutual consent reduces the likelihood that one party will believe the ruling is biased or unfair.
Final: Arbitration has limited options for filing an appeal. In most cases, the arbitrator's decision is final, and both sides can move on with their lives. In contrast, appeals of a court trial verdict may drag on indefinitely.
Privacy: The accusations levied during a public trial could damage a moving company's reputation, even if they are proven false later. Arbitration proceedings are private, and the information and arguments presented by both sides remain confidential.
Flexible: In a trial situation, both sides are at the mercy of the court docket, which could lead to scheduling issues for busy moving companies. Arbitration hearings offer more convenience, as the parties can submit written documents to the arbitrator for review.
Is Arbitration a Mandatory requirement for movers?
Moving companies must participate in binding arbitration. The DOT requires all movers involved in the interstate shipment of household goods must enroll in an arbitration program before launching their business. The DOT instituted this rule to provide an alternative to litigation in Federal Court when resolving moving-related damage claims and monetary disputes.
Federal law governing interstate shipments of household goods under 49 CFR § 375.211 provides that an interstate moving company must have a program in place to provide shippers with an arbitration alternative to litigation. Arbitration is optional and not required under federal law. A moving company cannot require that a consumer shipper proceed through arbitration prior to litigation. Arbitration is available for all claims involving property loss, property damage, and disputes over charges for services.Moving companies must provide written notice of arbitration to shippers. A moving company must provide each potential consumer shipper with a written summary of the arbitration program prior to the order for service being issued. The written summary of the moving company’s arbitration program must include the following:
- Summary of the arbitration process
- The associated cost for each party involved in the arbitration
- The legal effects of an arbitration
The arbitrator selected by the parties must render a decision within 60 days of the receipt of the written notification of the dispute by the parties. In regard to the applicable costs associated with the arbitration, a moving company cannot require that a consumer shipper be responsible for more than 50% of the cost. If the arbitration alternative is chosen, then any decision made by the arbitrator may be binding if the dispute is for an amount less than $10,000. Additionally, an arbitration decision may not be appealed in a court of law.
How Does The Arbitration Process Begin?
To initiate the arbitration process a consumer shipper simply has to inform the moving company of their intent to arbitrate. It is advised that a demand for arbitration be sent via certified mail to the moving company. Once the moving company has received the written demand for arbitration, they are required to send the proper forms and information from the neutral arbitration service they use. If a moving company fails to comply with the demand for arbitration, they can be sanctioned by the FMCSA with civil penalties.
Arbitration Requirement for Movers
When consumers hire your moving company, they put their trust in you. They expect you to transport their belongings from one property to the next with minimal issues. The FMCSA requires moving companies that cross state lines to offer an arbitration program to customers. An arbitration program needs to contain at least 11 elements:
- The mover shouldn't have an advantage due to the shipper being far from the mover's center of operations.
- The mover must present information on the arbitration program to the shipper in advance of the move.
- The mover must provide the shipper with the relevant arbitration information upon request.
- The arbitrator needs to be independent of all parties in the dispute.
Arbitration Program
Enroll in our arbitration program as a means to resolve disputes regarding lost or damaged goods, or excess charges
- Meet the arbitration requirements mandated by the FMCSA
- Resolve disputes in a flexible setting and avoid court
- Save money on attorney and court fees.
- Work with an arbitrator professionally trained to resolve disputes and maintain your reputation.
- Efficient processing of all customer's loss and damage claims
Join the Network
Verified movers benefit from higher conversions and moving referrals. Join our commitment to creating a safer industry. and let us help grow the market share ofor legitimate movers with ethics and higher standards of service.
- Receive the full benefits and support of our Arbitration Program +
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- Referrals In Your Service Area
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- Designated Customer Support
DISCLAIMER: USMPO is not an insurance company and the employees of USMPO are not acting as your insurance adjusters. USMPO does not practice Insurance laws and does not give legal advice. This site is not intended to create an insurance claim, and by using the USMPO website, no insurance claim will be created with USMPO. Instead, you are filing a Household Goods claim with the carrier who moved you. USMPO websites information as well as any advises of its employees is not a substitute for the advice of an attorney. The information contained on this website is designed for informational purposes only. Nothing on this website is designed or intended to constitute legal advice. Federal, state, and local laws and regulations governing the moving industry change frequently and may be interpreted differently by different people. If you need specific legal advice you should consult a lawyer directly or a representative from the US DOT.