On the whole territory of the United States of America, each mover should follow the legal prescriptions aimed at protecting customers’ interests and providing transparency of relations within the given industry. These provisions are regulated both on the federal level and in the legislative acts of all states. We would like to remind everybody about the main positions of legal regulation of the activity of moving companies in America.
Federal Regulations for Moving Companies
At the federal level, moving companies, like Moving Company NYC, are regulated by the Federal Motor Carrier Safety Administration, better known by its acronym FMCSA. FMCSA sets minimum standards all interstate movers should follow. Important provisions include:
- Licensing and registration. Any company involved in interstate transportation must obtain a DOT number – Department of Transportation number – and registration with the FMCSA. This is proof of the legal right of the company to provide trucking services;
- “Rights and Responsibilities” pamphlet. The FMCSA requires every moving company to give customers an informative pamphlet that lists consumer rights and responsibilities. It describes regulations about estimating the cost of transportation, and how claims are processed, among other key factors;
- Property Valuation. The mover must provide two kinds of estimates of value: minimal coverage and full-value protection. The customers should be clearly aware that the former receives only a very low valuation for goods lost or damaged, at about $0.60 per pound, whereas the latter has an added cost to them but with higher compensations.
Besides, FMCSA asks companies to keep records electronically and update their registration every year. This will enable federal agencies to keep track of the standards and also help in safeguarding consumer interests.
State Regulations
There are tremendous variations in state-level regulation of movers. Each state in the United States has its own licenses and regulations with regard to intrastate transportation. For example, in California, movers are regulated by the Public Utilities Commission of CPUC:
- CPUC license. To operate in California, a moving company should get a permit issued by the CPUC. It means checking on security and insurance compliance;
- Rate transparency. Companies are obliged to give customers a copy of the detailed price list of services to avoid unexpected additional charges;
- Claims resolution. California laws make companies resolve disputes with customers within a certain time by providing access to independent arbitration procedures.
Other states, such as Texas or New York, have similar provisions, which again depend on local needs and market characteristics.
Insurance and Liability Requirements
One of the key aspects of legal regulation is the insurance and liability requirements of moving companies. Companies are required to carry:
- Compulsory liability insurance. This coverage protects customers from potential losses due to accidents or negligence on the part of the company;
- Commercial auto insurance. Covers vehicles used to transport goods;
- Cargo Insurance. Provides protection for a customer’s property against damage or loss during transportation.
Consumer Protection Laws
Consumer protection laws play an important role in regulating movers. These laws provide the following rights to customers:
- The right to clear contractual terms. Customers have the right to receive a clear and transparent contract that spells out all terms, including rates, terms, and the parties’ responsibilities;
- Prohibition on fraud. Companies are not allowed to mislead customers, inflate prices once a contract is signed, or withhold property until additional contingencies are paid;
- The right to file complaints. Consumers can file a complaint with the FMCSA or appropriate government agencies if their rights are violated.
Consumer protection laws also provide significant penalties for companies that fail to comply with these regulations.
How to Choose a Legally Compliant Moving Company
Consumers need to know how to choose a reliable moving company that holds all legal requirements. Recommended: Check the DOT numbers and licenses; Read the reviews and ratings of the company with FMCSA; Study the contract and ensure detailed information about insurance. This will help to avoid fraud and minimize the risk when choosing among moving companies.
Conclusion
Legal control of moving companies in the United States is targeted at the protection of customers’ interests and increasing the transparency of the industry. Understanding such key legal provisions as licensing, insurance, and consumer protection laws helps customers and companies interact successfully in the marketplace. For customers, compliance with all legal requirements should be one of the guiding factors in choosing a moving company in order to ensure the safety and quality of the process.
Source: ElateMoving.com
