USMPO & FMCSA
4315 50th Street NW
Suite 100
Washington, DC 20016
Strategic Plan Proposed for Collaboration Between the U.S. Moving Protection Organization (USMPO) and the Federal Motor Carrier Safety Administration (FMCSA)
The U.S. Moving Protection Organization (USMPO) is committed to fostering a safer and more transparent moving industry by addressing the rising challenges posed by rogue movers and unethical business practices. Our mission is to protect consumers and legitimate movers from the harmful effects of moving fraud and deception. Through our Register Your Move initiative, we aim to enhance consumer education and provide the necessary tools to help consumers make informed decisions before they fall victim to fraudulent activities.
This strategic plan outlines how USMPO can collaborate with the FMCSA to combat fraud in the moving industry and support the goals of consumer protection, fair competition, and improved safety standards. Furthermore, by sharing our data with the FMCSA, we can provide a turnkey, no-cost, solution to satisfy the 14 Recommendations for executive action proposed by the GAO and creating a more user-friendly database.
Key Challenges in the Moving Industry
- Increase in Rogue Movers: The moving industry is saturated with rogue operators who use deceptive practices such as low-ball estimates, bait-and-switch tactics, and high pressure sales techniques. These practices undermine consumer confidence and create an uneven playing field for legitimate movers. Many consumers, particularly senior citizens and minority groups, are highly susceptible to these deceptive practices. They often encounter fraudulent movers who present the lowest bids, which leads to financial exploitation and stress.
- Limited Consumer Resources: Most consumers are unaware of the risks associated with moving fraud until after the incident has occurred. After losing their money, or valuables, they do not have a resource to turn too. Their only option is to submit a review or file a complaint which fails to provide a just solution.
- Rising Costs for Legitimate Movers: Due to the saturation of online brokers and rogue movers, ethical moving companies are forced to absorb the high costs of generating leads, averaging over $150 per lead. Compounded by inflation and shrinking consumer trust, this makes it difficult for legitimate businesses to compete ethically, further exacerbating the issue.
- Reactive Nature of Current Consumer Protection: While the FMCSA provides critical information and resources for consumers, this information often reaches the public only after fraudulent activities have occurred. The current framework largely focuses on complaint-driven actions, leaving a gap in preventive measures.
- Inefficiencies in the FMCSA Mover Database: Although the FMCSA’s directory of licensed movers is a valuable resource, it is not user-friendly for the average consumer. The directory is extensive and difficult to navigate, making it challenging for users to differentiate between legitimate and rogue movers. This challenge underscores the need for a more refined and accessible tool that simplifies the process for consumers.
The USMPO’s Register Your Move Initiative, a Preventative Solution to Rogue Movers
The Register Your Move initiative is a no-cost plan designed to provide proactive consumer protection by encouraging shippers to register their moving plans before reserving with a mover. Once registered, USMPO supplies consumers with important resources to help them identify high-risk estimates, evaluate the legitimacy of their chosen mover, and make informed decisions.
This initiative works by:
- Enrolling Legitimate Movers to Raise Awareness: To drive mass awareness at no-cost, we look to collaborate with larger van lines that generate high volume of traffic. As a contribution to creating a safer industry, these vanlines would incorporate the registration process pre-reservation, demonstrating a commitment to safety while minimizing the risk of being underbid by rogue movers. In return, fraudulent quotes and rogue movers are eliminated from the consumers decision making process.
- Shipper Registration Process: Each of the 10 questions on the registration form is designed to inform and educate shippers into making a safer decision. (Ig: Do you know the difference between a broker and a carrier? Do you know the difference between full value protection and release value? Have you received and read your rights and responsibilities handbook?) The form also collects data which can be used to identify patterns, follow up with consumers for feedback, and optimize shipper experience.
- Inform & Educate: Once a shipper is registered, we make sure they receive the consumer rights & responsibilities handbook. We educate shippers on how to recognize red flags in low-ball estimates and misleading offers.
- Safety Contact: We also serve as the shipper’s point of contact throughout the move to intervene and assist with unjustified price hikes, negligence, and hostage situations. Through leveraging our authority and industry knowledge, we act as a safety net, empowering consumers and providing alternative solutions in otherwise hopeless situations.
- Preventing Fraudulent Engagement: By engaging consumers before they make a decision, we can provide critical information that helps shippers avoid rogue movers altogether.
Strategic Collaboration with the FMCSA
To build a safer and more transparent industry, USMPO seeks to collaborate with the FMCSA on the following initiatives:
- Data Sharing and Analytics: USMPO collects detailed data from consumer feedback, mover performance, and industry trends. This data can assist the FMCSA in identifying patterns of fraud, high-risk operators, and other key insights that can enhance regulatory oversight and consumer protection efforts. This consumer data can be organized to feed the organizational requirements of enhancing the FMCSA’s database.
- Preventive Public Awareness Campaigns: While large-scale public service campaigns may require significant funding, a collaborative effort between USMPO and FMCSA can leverage existing platforms to educate consumers about the dangers of rogue movers. The FMCSA’s reach, combined with the USMPO’s boots on the ground approach, can amplify efforts to engage with consumers early in the moving process, providing them with the resources they need before encountering fraud.
- Improving Record-Keeping, Accountability, and Refinement of the FMCSA’s database: By tracking registered moves through our initiative, USMPO can contribute valuable insights to the FMCSA’s database, helping improve industry-wide transparency, record-keeping and accountability. This will further bolster the FMCSA’s role in safeguarding the integrity of the moving industry satisfying the recommendations of executive action proposed by the GAO.
Furthermore, this strategy contributes to more a “user-friendly” database that empowers consumers to make safer and more informed decisions. Refining the FMCSA’s directory will improve consumer access to trusted movers, and identifying high-risk movers, offering increased visibility for legitimate movers and eliminating rogue movers responsible for price hikes, hostage situations, and scams overall.
Benefits to the FMCSA and the Industry
Reduced Consumer Complaints
By addressing fraudulent practices at the source and equipping consumers with preventive tools, we can reduce the number of post-fraud complaints received by the FMCSA.
Enhanced Regulatory Efficiency
Access to USMPO’s data can provide the FMCSA with deeper insights into industry trends and problem areas, streamlining enforcement actions and improving compliance monitoring.
Stronger Consumer Trust
A joint effort to combat fraud will restore consumer confidence in the moving industry, benefiting both consumers and legitimate businesses.
Summary
A collaborative effort between the USMPO and the FMCSA presents a significant opportunity to safeguard the moving industry against fraud, rogue movers, and unethical business practices. By focusing on proactive consumer protection, data-driven insights, and shared resources, we can build a safer, more transparent, and trustworthy moving environment. The USMPO is committed to working closely with the FMCSA to implement these strategies and enhance the integrity of the household goods moving industry. Together, we can protect consumers, strengthen legitimate businesses, and create a fair marketplace for all. Thank for the time you took to read this and your consideration.We look forward to working with you to achieve these shared goals and would be happy to discuss how the initiative can best support your business objectives.