Settlement With Brooklyn Movers

New York State Attorney General Spitzer today announced a settlement with the owner of three Brooklyn-based moving companies that will change the way the companies do business and provide refunds to consumers.

The settlement ends a year-long investigation of the companies by Spitzer's office. The investigation was prompted by numerous consumer complaints that found the companies, Piazza Van Lines, U.S.A. Van Lines, and ABC Van Lines, located at 100 First Street in Brooklyn, engaged in numerous deceptive business practices, including providing low ball estimates for the cost of moving, failing to provide written cost estimates for moving expenses, inducing consumers to sign blank contracts and withholding consumers' possessions when billing disputes occurred.

Under the agreement, the companies agreed to return all household goods withheld from consumers, reform their business practices to comply with state law, and to binding arbitration with the state Department of Transportation, the agency responsible for reviewing consumer complaints of this nature. The owner, Arie Grinbaum, a/k/a Eric Grinboum, a/k/a Eric Greenbaum, will also pay a penalty of $9,500.

Consumers who believe that they have been victims of deceptive billing practices by these companies or wishing to file a compliant can submit their claims to the New York State Department of Transportation at (718) 482-4810, or the New York State Attorney General's office at (800)771-7755, or visit the Attorney General's website at www.ag.ny.gov.

The Attorney General thanked the Department of Transportation for the agency's assistance in this case.

The case was handled by Assistant Attorney General Philip Grant and Lois Booker-Williams, Assistant Attorney General-in-Charge of the Brooklyn Regional Office.

Attorney General Spitzer provided the following information to consumers interested in planning moves:

• Find out if the mover is licensed by the state Department of Transportation for moves wholly within New York, and by the Federal Motor Carrier Safety Administration for moves between New York and another state. Although unlicensed movers may be cheaper than licensed movers, licensed movers must meet various insurance, safety and financial standards.
  
  
• Don't take unnecessary risks by using a mover who won't give you an address, rather than a post office box, and a license number.
  
  
• Before selecting a mover, know and understand your rights. If you are moving entirely within New York, ask the New York State Department of Transportation for its Summary of Information for Shippers of Household Goods. If you are moving out of New York, obtain a copy of Your Rights and Responsibilities When You Move from the United States Department of Transportation.
  
  
• Check out the mover. For information about an intrastate mover, contact NYSDOT at 1-800-786-5368. In addition, call the Better Business Bureau at 212-533-6200 (New York City area) and 1-800-828-5000 (elsewhere in the state).
  
  
• Get estimates from different movers based on a physical inspection of your home or apartment.
  
  
• Be wary of any estimate that is far less than the figures offered by other movers. This could be a "low-ball" bid that will be hiked up at the time of your move.
  
  
• Read the bill of lading carefully. The bill of lading is a formal contract. Before you sign it, make sure you understand whether the cost of the move is based on the time it takes to do the job, the weight of your goods or whether it is fixed in advance in a written binding estimate. (Remember, you won't know the exact cost of an hourly-rated or weight-based move until the shipment is delivered or weighed).
  
  
• Never sign forms that have blank sections to be filled in later by the mover.
  
  
• Before anything is moved, make sure the mover gives you a written "Order for Service" which sets forth the probable cost of the move and how much you will have to pay to have your property unloaded if the actual cost exceeds the estimate. In order to have your goods released after a move within the state, you generally cannot be obligated to pay more than any original estimate plus 25% in the case of hourly-rated moves, or plus 10% in the case of a weight-rated move. You must be given 15 days after delivery to pay the balance on intrastate moves. For moves between two states that are billed by weight, the maximum payment due on the moving day is 10% above the estimate and any balance must be deferred for 30 days after delivery (no such interstate rule applies for hourly-rated moves).
  
  
• Make sure you understand the different levels of protection available for your belongings and the limitations on the mover's liability. Before you sign a bill of lading, ask yourself whether you want basic, intermediate or maximum coverage for your goods. Expensive or valuable articles should be separately listed for their full value. Remember, if you want the maximum protection, you must specify the dollar amount in the valuation section of the bill of lading.
  
  
• File all claims promptly and in writing with the mover. Keep a copy of your letters, payment records and contract documents in case you have a problem with your move.
  
  
• If your claim is not resolved, file a complaint with the NYS Department of Transportation. You may also request arbitration through the mover's dispute resolution program, or you may consult with a private attorney.
  
  
• To obtain more information on movers or if you have a problem with a mover, please contact: New York State Department of Transportation: (800) 786-5368 or the Attorney General's Office at (800) 771-7755.