Is requiring an upfront deposit illegal
This is a common misconception in the moving industry about a mover requiring an upfront deposit from the customer.
In general, it is legal for a moving company to ask for a deposit but that doesn't mean it's a norm.
In fact, it's rare to encounter a moving company that asks for an upfront deposit.
While lawfully allowed, the request to pay a deposit upfront serves as a warning to the customer.
Asking for the full price of the move ahead of time is a potential scam that some fake companies tend to carry out.
A professional and reliable mover uses an upfront deposit as collateral.
In this guide, let us know when to pay a mover and also understand when no to initiate a moving deposit.
Are Upfront Moving Deposits Legal or a Red Flag?
In most cases where a deposit is requested upon booking, the moving company asks for a small amount of money upfront.
They use the down payment as a warranty which insures against a customer backing out and canceling the day off.
Losing a booking costs the company money, because that lost time could have been spent on a legitimate move.
The upfront retainer protects moving companies from these issues.
TIP: It's perfectly okay for you to ask the mover the reason behind the deposit, especially in the winter. A mover's busiest season occurs in the summer months (May through August).
What's the biggest red flag when booking a mover?
A moving company that asks the customer to put down a large sum of money can turn out fake in most cases.
When moving companies request a deposit, it should never be more than a few hundred dollars.
A mover that asks for more is usually operating a scam, so beware.
If you book a moving company that demands half of the total moving costs in advance, you might be dealing with a moving broker and not an actual moving company.
There is also a high possibility that you are being deceived.
An honest and reliable broker will never ask for such an unreasonable amount of money for no services rendered.
- Read customer reviews to see if other people mention paying an upfront deposit.
When hiring a moving company, research their history by doing a background check on a moving company:
- Read real customer reviews
- Check their rating with the Better Business Bureau (BBB)
- Verify their licensing and insurance credentials
- Ask the movers any questions you may have about the process before you make your choice
Can I Book a Mover through a Broker?
If you book a mover through a broker, it can be difficult and even impossible to figure out the name of the actual company moving your belongings.
And if you don't know who is moving you, you cannot check their reliability
Avoid getting scammed by paying your deposit by post-dated check or credit card to a broker.
If you're moving in peak season, like during the summer or in an area where lots of households are relocating, the moving company has every right to ask you for an upfront deposit.
The best way to avoid a moving scam is to pay in a method that can be traced.
TIP: Be wary of any mover that wants the deposit in cash!
Conclusion
Most reliable movers doesn’t require a deposit. They will allow you to pay the deposit however you wish. That way, you have proof you paid them and can cancel the payment if they disappear.
Request a stop payment on checks that have not yet been cashed or post-date for after delivery. If you prefer to pay by credit card, you can ask the card provider to issue a chargeback.
Finding reliable and compliant movers is sometime challenging. We at movers.com onboard moving companies who met stringent compliant measures. This allows our customers to trust their moving partner and experience a smooth moving from start to finish.