Consumer complaints about movers have more than tripled

Moving is seldom fun. Then again, count your lucky stars you were not:

• Gloria Blanchard, formerly of Issaquah, now of Denver, who has been living without her bed, her clothes and most of her possessions for nearly two months while she fights with her moving company over a bill.

• Shannon Burgess, formerly of Seattle, whose $700 quote became a $1,300 demand when his goods arrived, late, in San Francisco. When Burgess complained, the mover said that for every 30 minutes Burgess refused to pay, the price was going up $50.

• Brian Varn, formerly of Portland, now of Canton, Ohio, who watched in disbelief as the mover's truck drove off with his 55-year-old father hanging from the side, arguing over the escalated price of delivery.

Each was a customer of a Woodinville-based mover named Nationwide Moving Systems, a 10-month-old company that has been operating illegally, according to state and federal regulators.

Erik Deri, an Israeli who along with his American wife Tanya Deri runs the fledgling business, says it is "not exactly correct" that he is operating illegally. He says he is in the process of getting the proper paperwork. Deri also says he treats customers with respect and that he has far more satisfied customers than unhappy ones.

But last week, after The Seattle Times asked questions about the company, federal officials said they were starting an investigation into Nationwide Moving Systems' operations.

The company also is the subject of several complaints on file with the state attorney general. And The Times located several other consumers who said they had unhappy dealings with Nationwide but didn't bother to file complaints.

Among other things, they complained about rude or nonresponsive treatment, Nationwide's use of day-labor hires with no apparent moving experience, and lost or damaged items.

Industry complaints on rise

What's not in dispute is the rising number of consumer complaints overall about the moving and storage industry filed with the national Council of Better Business Bureaus. Last year, it fielded more than 9,000 complaints, which was more than three times the number in 1996.

The Federal Motor Carrier Safety Administration, part of the U.S. Department of Transportation, accepts consumer complaints about movers. It receives about 20 calls a day from consumers who have done business with fringe movers "whose primary business is not moving, it's thievery," said agency spokesman Dave Longo.

He estimated he had a half-dozen complaints on Deri's Woodinville company. Longo characterized at least one as a "hostage" load, which he described anecdotally this way:

"It's where you contract with me (the mover) for $1,500 to move your stuff from New York to Chicago, and you think that's a great idea. And when I get your stuff loaded on my truck, I say, 'You know what? You got more stuff than I thought. It will cost $5,500, and I won't take anything less than a cashier check.' And you're standing there with your mouth open."

But because his agency's authority does not include dispute resolution, "we cannot get involved to help consumers retrieve their goods," Longo said.

The problem has escalated to the point that U.S. Rep. Tom Petri, R-Wis., chairman of the House Highways and Transit Subcommittee, introduced a bill last week that would give states authority to enforce federal rules governing the moving industry.

"While the vast majority of moving companies operate in a fair, open and honest way, consumers are facing an increasing problem with rogue movers," Petri said. "One of the most egregious practices of scam movers is the 'hostage goods' situation ... in strict violation of federal regulations. ... And yet there is little the consumer can do."

But the moving industry opposes Petri's bill, arguing that Longo's agency already has the power to assert more authority. The American Moving and Storage Association also worries that the bill could expose movers to frivolous state-court lawsuits alleging deceptive practices.

Permit was needed

It was Nationwide Moving Systems' Web site that caught the eye of Tina Leipski, a transportation specialist with Washington state's Utilities and Transportation Commission (UTC), which oversees in-state movers. They were advertising on the Internet without a permit, she said. So she sent a letter in September.

"Please be advised that you may not transport household goods intrastate nor interstate, nor advertise, without first obtaining a permit to do so," Leipski wrote.

A few days later, Nationwide submitted an application. But as of yesterday, the company had yet to receive even provisional approval for in-state moves because it lacks the required insurance, UTC officials said.

Deri obtained a business license last April and filed state incorporation papers in May. But the company didn't start on its application to operate as a mover until after the letter from the UTC. In addition, Nationwide waited until last month to register with the state Department of Labor & Industries, which said it is investigating.

Longo, the federal-agency spokesman, said even though the company managed to get a federal "carrier" number — probably by starting to fill out an application — it never received operating authority to haul household goods across state lines. Longo's agency said federal records show that Nationwide lacks required insurance.

Longo estimated that nationally there are fewer than 100 "renegade" outfits — those that operate without any regulatory authority. But going after them is a low priority because they do not pose "life-and-death" situations affecting motor-carrier safety, which is his agency's primary mission, Longo said.

The agency occasionally builds civil cases against movers that result in fines and license sanctions, Longo said.

He, too, laid blame on the Web. Among other things, it supports a nebulous system of "referrals," where unwitting customers think they are doing business with Company A. Then, on moving day, Company B's truck shows up.

That's what happened when John Jennings went online in September to arrange a move from Issaquah to Boynton Beach, Fla.

Jennings made a deal with Elite Van Lines of Plantation, Fla., paying a $200 deposit on a move that was to cost $3,931.

When the movers arrived, he said they gave the impression they were with Elite, and Jennings paid another $3,000. It was not until after the crew had "put all the furniture and boxes into the truck (that) they identified themselves as Nationwide," he wrote in a complaint he filed with the state attorney general.

The movers presented an invoice for $16,000 but said they would settle for $8,000. Jennings instructed the crew to unload his stuff. Instead, they drove off and stored it at the company's warehouse, Jennings said.

Ultimately, the total cost of his move, after hiring a different company to retrieve, move and re-store his possessions, exceeded $11,000.

Jennings filed a $3,000 small-claims action. Late last month, he flew to Seattle to tell his story to Northeast District Court Judge David Steiner. Six days before the case was heard, Deri told a reporter he would defend himself against the claim.

His movers identified themselves as being from Nationwide as soon as they arrived at Jennings' residence, Deri said.

He added he deserved to keep the $3,000 because his employees worked 15 hours packing and loading Jennings' stuff, then unloading and storing it again. Deri said Jennings "lied when he said how much (stuff) he had" while booking the job.

"I don't owe him anything," Deri said.

But when the docket was called Feb. 27, Nationwide was a no-show. After hearing Jennings' tale, the judge said, "That's a sad story," and entered a $3,000 judgment against Deri's company.

Asked to pay on spot

Gloria Blanchard still is waiting to get reunited with her possessions.

She said she got a quote of $1,100 from Nationwide, not including packing material, over the phone in December.

During the move in early January, the crew ran out of packing materials and asked her to supply blankets, she said. In addition, the crew recalculated the cost, to $2,533. Plus, they said Blanchard had to pay half on the spot, which she did.

Blanchard believed she was relocating to Georgia. But she asked Nationwide to store her goods for up to a month, in case her job prospect fell through, which it did.

Blanchard ended up in Colorado, and in mid-January she phoned Nationwide to let them know where she was.

"Who are you?" was the reply she says she got from Deri. She says he cut her off when she tried to identify herself and provide the delivery address.

"They just kept pretending they did not know me," Blanchard said.

Asked about Blanchard, Deri said Blanchard never provided an address.

"She doesn't know anything except her name," Deri said. "There is no way that I can carry on a conversation with her."

He recently told a reporter that Blanchard had two options: pay another $1,633 for Nationwide to deliver her stuff, or pay another $500 and come get her stuff herself.

A few days after that, Nationwide sent Blanchard a fax offering better terms: If she paid $90, and if she quit complaining, Nationwide would release her stuff to another mover. Blanchard recently said she's mulling it over.

Price kept increasing

Shannon Burgess also had problems on the delivery end of a deal with Nationwide. After Burgess moved to San Francisco from Seattle in early January, Nationwide kept changing the time and date of delivery as well as the agreed-upon $700 cost.

Burgess said his stuff arrived 11 days late, at 10:15 p.m., with Nationwide's movers insisting on an additional $200 in cash.

When he balked, the movers kept upping the price, Burgess said. Burgess contacted a reporter Jan. 23 and said Nationwide was demanding $1,300, "plus $50 (additional for) every half-hour" he didn't pay their price.

Deri claimed Burgess owed additional money for packing materials. He said he insisted on cash because he sensed Burgess "was going to stiff me."

Later that day, Deri contacted Burgess. He offered to lower his demands and deliver the goods on more favorable terms — with the understanding that Burgess would say nothing further.

Deri said Burgess' complaint was an isolated case and that his company had a clean record. But four other complaints were on file with the state attorney general. Asked later about his claim that Burgess' claim was unique, Deri said, "My memory is not an Einstein memory."

Deri claims he has moved 500 customers since he started business in May, and that the vast majority were satisfied.

Asked for names and phone numbers, Deri produced three customers who he said gave him high marks. The Times contacted each. Not one said they would recommend his company.

One of them, Brian Varn, said, "We had a terrible experience with them."

He said he was satisfied with the packing and loading job the movers did in Portland, which is when he was handed a survey form. He soon grew disillusioned, though, after learning the price of the move had shot up to $4,500 from $1,200.

But the worst was yet to come. The movers showed up in a rental truck in Canton, Ohio, three weeks late, at 11 p.m. The movers told Varn that for every five steps they had to carry his stuff vertically, it would cost an additional $150.

Varn argued with the movers that such a "step charge" had never been disclosed.

"They started to drive away with my dad hanging on the side of the truck trying to talk to them," Varn said. "We called the cops."

His dad jumped off the running board just before police arrived, Varn said.

The Canton Police Department confirms it sent officers to Varn's address in response to his call. Varn said the police told him they'd impound the moving truck if the movers tried to skip town, "because they'd consider it stealing our stuff."

The next day, Varn said, the movers returned but didn't charge extra: "They just dumped it all in my garage and left."

Peter Lewis: 206-464-2217 or plewis@seattletimes.com