Complaint Review: Nationwide Relocation Moving Cost

In the following paragraphs I will attempt to illustrate how we became a victim of Nationwide Relocation. We believed that this company unfairly manipulated and coerced us into what resulted in a signficant overcharge for their services. First, to prevent confusion, I need to mention that Nationwide relocation/Moving cost Inc. is not a carrier (a fact that is not mentioned until later), but rather sub-contracts to one of over 300 carriers.

This is how it happened: Our original move coordinator with the aforementioned company, Connie Davey (ext 328), quoted us an estimate of $3,000 (all figures are rounded to the nearest 100) based on the estimated weight of 7,200 lbs in late November 2006 and we signed a contract at that rate. This was indeed very close to the actual weight that was determined after the move (based on weight tickets of 7,800 lbs, a 600 lb difference, our move was on Dec 22). But, in the first week of December 2006, we received a phone call from someone who identified himself as Chuck, of quality control. Chuck's stated goal was to make sure that we did not underestimate the weight because the moving truck may not have room if we underestimated by too much. After rechecking our items he thought that the original estimate was OK, BUT he suggested that we purposely overestimate so that we will have room (scare tactic), and he offered that by overestimating the weight we could pay more of the deposit with a credit card, thus reducing the amount of cash we would have to carry across the country during the holidays. My wife and I, who are always very nervous about carrying large amounts of cash on us, since the mugging last year, thought that was a great idea. He said that there was no penalty for overestimating the weight, since the difference in cost based on the re-weigh (the actual weight minus the estimated rate) could be refunded through the credit card and that our original rate was guaranteed!! It is their policy to refund any overpayments through the credit card (later we found not to be true!). Consequently, we agreed to the overestimate, which was then estimated 9,900 lbs (we signed a new contract at that time). Chuck outlined for us that since our move cost would actually be about $3,000 (based on the first estimate ($3,000) given by Connie) that we could put $2,700 on the credit card now (then Dec 7, this was done by adding a new charge of $1,700 on top of the original deposit of $1,000) and pay the remainder when the moving company arrived, thus we would owe them no more than $500.00, and our total estimated charge was now $5,500. He said not to worry about this large change, as this was the only way to artificially increase the bill to allow us to pay such a large amount upfront on the deposit with a credit card and he stated that our original rate was guaranteed. We were also told (by Connie, Chuck and the driver) that we would get a re-rate when the driver faxed in the weight BEFORE the delivery on Dec 26 (we did not get a re-rate until Jan 6, 2007), I called many times on the 22, 23 and 26 to get this new estimate before the movers arrived, and they consistently stated they had the numbers (weight tickects) and would call me back, they finally said to pay the driver the full amount if I did not receive a phone call from them and not to worry as I would be refunded any difference through Moving cost Inc. The driver showed up demanding the full estimate ($2,700, after a tiny discount ($40) because my wife and I loaded the truck ourselves (4 hours of hard work) when the sub-contracted movers did not show up, but that is another story), which we did to accept delivery. I do believe that Avalon moving is an honest company and are also victims of Nationwide (see below).

However, closer inspection revealed that Chuck did more than change the estimated weight, but he also increased the rate (cost per pound) by 33%, so our original estimate would cost 42 cents per pound to 56 cents per pound. So now after adjusting for the correct weight (based on weight tickets in hand, THAT SAVED US TONS of $, bc Nationwide said they never received them from the driver even though he showed me the dated fax sent on the 22nd, if we did not have them they would have charged the full amount, OUCH) we owed nationwide $1,800 rather than $700 that we would have owed based on our original rate, a difference of $1,100. I am told now by moving cost inc. that the contract states in item #1 that the contract supercedes all agreements made by any agent or representative, thus we are responsible for payment at the new rate (the contract also states that we waive the right to sue them too). The way that I interpret this statement is that the give free reign to their salespeople to say whatever they want to get their customers to sign the contract and by signing the contract and attached waiver we cannot hold them responsible for what they say. Hence this is why I feel that moving cost inc. is practicing unfair and clearly unethical business practices, as they clearly coerced and manipulated us into signing a new, more expensive, contract under false pretenses (Who in their right mind would sign a more expensive contract under normal circumstances).

They refused to honor the first contract under any circumstances, but did comprise to a new rate of 49 cents per pound (after I put a hold on the CC), exactly the mid-point rate between the two contracts. To prevent further headaches and to resolve this issue we have agreed to the terms (although I would consider pursuing more later). However, I have a new concern as again they are not refunding the full amount ($1,700) that we agreed on through the credit card as stated (to date they have refunded $1,300 to the CC), but rather, told me that Avalon moving (the sub-contractor based in California) would refund the remaining balance of $400. I have called Avalon moving and they said that they thought that the refund was unfair as their contract with Nationwide/moving cost inc stated they would make the full $2,700.00 (paid in cash by us on Dec 26, 2006, thus that is why the movers are so insistent about demanding $ on delivery as that is all they are going to make) and they were considering not paying the refund directed to me, and they would not give me a definitive answer on their decision (and I can't blame them). The representatives at Avalon stated were very angry that our estimated weight of 9,900 lbs was much too overestimated (actually weight was 7,800 lbs), thanks to "Chuck", and were put out because they diverted a truck to pick our load up so they could make more money, based on the greater weight. Avalon moving further elaborated that if they decided not to pay this amount, because they stated that Moving cost guaranteed them that weight and payment, that Moving cost Inc would not claim responsibility and I should consider disputing what I can with my credit card (by the way once you pay your credit card you have forefit you right to dispute, a fact that NL knows b/c if you read the contract the refunds are made only once the CC is paid in full). As of now, 2 weeks after I was told by Moving cost Inc to expect a refund check from Avalon moving, I have not received a refund. I hold Moving Cost inc. responsible for the full agreed upon refund, thus I am still disputing the amount of $400. If the movers get only the cash in the end (that is probably why NL did not give me a re-rate, thus Chuck knew he was lying and would have to pay the large amount in the end anyways) their payment for the move would be $2,200 (if they give me a refund) and PROFIT for NL is about $1,400, a tighty profit for a few phone calls.

I hope that my description has been adequate enough to capture the essence of our victimization (you can read other storys on how they can victimize you in other ways (i.e, charging huge overage rates)). Nationwide relocation/Moving Cost inc. appears to me to be operating with reckless abandon, perhaps as a result of looser trade regulations in the state of Florida, their base of operations. Also, I guess that most people do not have a vested interest as many companies pay for relocation, a fact that these companies can take advantage of. It is my sincerest hope that I will receive a check from Avalon and that this matter will at least end, not to my satisfaction, but to an end.

How can companies like this not get investigated by the government?? How to avoid all the moving scams? Rent your own truck and hire local movers on both ends (easy to do), thus you enpower yourself on when and how much the move will cost. Best of luck on your next move!

Duncan
Annapolis, Maryland
U.S.A.

Click here to read other Rip Off Reports on Nationwide Relocation Services