“rogue operators”, regulations & consumer protections tuesday, october 8 th, 2013 3:00pm –...

“ROGUE OPERATORS”,

REGULATIONS &

CONSUMER PROTECTIONS

Tuesday, October 8th

, 2013

3:00pm – 4:00pm

JENNIFER M. GARTLAN

(Unable to Attend)

Deputy Director,

Office of Consumer Affairs & Dispute

Resolution Services (CADRS)

Federal Maritime Commission

MONIQUE RIDDICK

Transportation Specialist

Federal Motor Carrier Safety Administration

Commercial Enforcement and Investigations Division

Presentation by:Monique RiddickCommercial Enforcement and Investigations Division

International Association of MoversVancouver, British Columbia

October 8, 2013



FMCSA Household Goods Compliance and Enforcement Program

We endeavor to better protect the consumer from moving fraud by

educating consumers, working with Industry to provide High Standards, and

by removing bad actors through our enforcement efforts.


Program Structure

Headquarters• Program Management• Policy Development• Outreach and Education

Field• Provides the Enforcement Component for the

Program• Spearheaded by Commercial Enforcement Specialists

strategically located around the United States


Program Outreach Initiatives

2013 Moving Season Marketing Campaign – March through September.

Red Flags Campaign Moving Fraud Prevention Checklist Updated www.protectyourmove.gov Updated “Your Rights and Responsibilities

When You Move” booklet.

http://www.protectyourmove.gov/



Red Flags of Moving Fraud



Red Flags of Moving Fraud

Your Rights and Responsibilities When You Move booklet not provided

No local address, license or insurance on website

No company name offered when office is called

Poor office and warehouse conditions

Generic Rental Truck Doesn’t offer or agree

to a physical survey Moving company

demands cash or a large deposit before the move



Moving Fraud Prevention Checklist



Moving Fraud Checklist

Check if the mover or broker is registered with the FMCSA.

Check the complaint record of a mover or broker.

Avoid movers that do not show U.S. DOT# or MC# in their advertisements.

Read the booklet “Your Rights and Responsibilities When You Move.”

Movers or brokers must give written estimates.

Do not sign blank or incomplete documents.

Understand the type of liability signed for.

Supervise loading and unloading or appoint a representative to act for you.



www.protectyourmove.gov

• Modernized Web Site• New PSA • Detailed information to

assist the consumer

• Greater than 12 million hits in 2013


Your Rights and Responsibility When You Move Booklet


Your Rights and Responsibilities When You Move

Your Rights and Responsibilities When You Move booklet has been updated to be more user friendly and will work in a digital format.

It is posted on www.protectyourmove.gov, available for download so you can distribute the booklet to your customers in either hard copy or digitally.

http://www.protectyourmove.gov/



State Partnerships

Implemented a HHG State Enforcement Partnership Program to

help combat moving fraud



Current State Partners

Texas Department

of Motor Vehicles

Louisiana State Police

Ohio Public Utilities

Commission



Federal Partnerships

Federal Maritime Commission (FMC)



Close Working Relationships

Surface Transportation

Board (STB)

Federal Trade Commission (FTC)

Office of InspectorGeneral (OIG)


Moving Fraud and Rogue Carriers are a Serious Problem

These companies are blatantly violating Federal and State laws.

They are preying on Consumers. They give the moving industry a bad name.


Impact of Moving Fraud

Financial loss Property loss Business denied to legitimate moving

companies State and local governments cheated of

revenue


What is FMCSA doing about Moving Fraud and Rogue Carriers?

Implementing the legislation that gives the agency more authority to attack and solve very difficult problems.

• Safe Accountable Flexible Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU)

• Moving Ahead For Progress in the 21st Century (MAP-21)



SAFETEA-LU

• On-site estimate – 50 mile radius of shipper• Liability – full value protection unless waived• Arbitration threshold - $5,000 to $10,000• Broker estimate w/o agreement - $10,000 fine• Unauthorized transportation (broker or carrier) -

$25,000 fine



SAFETEA-LU cont.

Hostage Loads

• Shipments held Hostage - $10,000 civil fine

• Suspend authority – for 1 year but not more than 3 years

• Criminal fine under Title 18 and imprisonment not more than 2 years



MAP-21

• As of October 1, 2013, brokers and freight forwarders subject to FMCSA jurisdiction are required to have a $75,000 trust fund or surety bond in effect and on file with FMCSA. Rule Making is located at 78 FR 60226.

• BMC-84 and BMC-85 forms have been revised.



MAP-21 cont.

Exam requirement to enter the industry• HHG Motor Carrier planned for October 1, 2014.• Broker in effect since October 2012, but may

demonstrate industry experience in lieu of exam.

Hostage Loads – May require motor carriers to return HHG being held hostage and pay the victim all or a portion of the fine imposed.



Moving Fraud Task Force

Objectives: Identify the very worst Rogue Movers and Brokers.

Gather the necessary evidence to remove Rogue Movers from the Industry while closing complaints.

Using all of the Agency’s Authority to initiate and follow through with strong, solid enforcement actions removing those Rogue Movers from the Industry.



Moving Fraud Task Force

Focuses on the absolute worst in the Industry.

Focuses very limited resources to make the most impact.

Endeavors to be the most effective while being the most efficient.

Puts into action the Administrator’s mandate to Maintain Standards and Remove Bad Carriers from the road.



National Consumer Complaint Database (NCCDB)

The NCCDB is the primary source for investigative data.

Centralized depository of Interstate Household Goods Complaints.



NCCDB Statistics

Fiscal Year 2011 – 2,868 2012 – 3,083 2013 – 2,921

Fiscal Year 2011 - 666 2012 - 441 2013 - 363

• HHG Complaints • Hostage Loads


Hostage Loads

Making hostage load complaints a priority. • Commitment to review hostage load complaints

that come into the National Consumer Complaint Database (NCCDB).



Division Contacts

Kenneth Rodgers – Division Chief (202) 366-0073/ [email protected]

Brodie Mack – HHG Team Leader (202) 366-8045 / [email protected]

Monique Riddick – Transportation Specialist (202) 385-2414 / [email protected]

“ROGUE OPERATORS”,

REGULATIONS &

CONSUMER PROTECTIONS

Tuesday, October 8th

, 2013

3:00pm – 4:00pm

“rogue operators”, regulations & consumer protections tuesday, october 8 th, 2013 3:00pm –...

Documents

investigations division

enforcement program

booklet slide

enforcement component

enforcement efforts

pm slide

fraud checklist check

red flags campaign