Moving Companies Have Mandatory Laws Change with Tariff in June 2022
Congress Gets Serious about Combating Complains in Moving Industry
Congress has set June 27th, 2022 as a crucial date for household goods organizations across the US. The FMCSA issued new rules and regulations impacting movers, shippers, brokers, and carriers.
Please read the updated FMCSA household goods policies below.
If you have questions, do not hesitate to give the Moving Authority team a phone call on new policys. (702) 333-2430
New Policies for FMCSA Publication: Your Rights and Responsibilities When You Move
These policy changes refer to 78 Fed. Reg. 25782. The FMCSA Rights and Responsibilities document educates the consumer. It allows the consumer to keep up with regulations. 78 Fed. Reg. 25782 is mandatory by every single mover. It applies to every single move. Moving companies have a responsibility. They must provide every consumer with the Rights and Responsibilities document.
An FMCSA agent can conduct an audit to ensure a mover maintains compliance. A carrier commits negligence when not providing the document. This can lead to a mandatory fine and suspension. It depends on how many times the violation took place. FMCSA agents fall under specific instruction. They must check all documentation that a carrier or moving company supplies. This is to ensure full-scale compliance.
Updated FMCSA Policy: Suspension of Operating Authority for Hostage Load Violations, 77 Fed. Reg. 64050
Your license will get suspended if a load gets labeled as a hostage violation. A hostage violation applies based on one simple factor. It is if a contract is under a binding or non-binding estimate. The Moving Authority association can help you understand the terms of a contract. A representative can assist you at any moment. Failing to operate a tariff and paperwork with the June 27, 2022 policy matters. In fact, it carries severe consequences. It could result in a carrier/moving company getting suspended without prejudice. Then, a hearing must take place with evidence set forth.
This policy change could lead to many carriers getting suspended.
Suspensions could happen to your company at a moment’s notice. The industry is expecting a record amount of suspensions. This could lead to a record number of commoners under forced closure. That is why your business must stay compliant with the FMCSA. The agency can apply fines to corporations. Plus, responsible parties with the license of the DOT holder can also get fined/suspended.
The FMCSA violation not only applies to a household goods motor carrier. The regulation also falls under broker regulations. Brokers become liable for these cases of hostage situations. Enforcement action with a moving company must take place. This relates to a company holding a motor carrier license. Or, a broker that fails to adhere to a contract. This results in a violation. Say an MC number holder/broker gets caught holding a consumer shipment hostage. The person can receive a suspension of no less than 12 months up to 36 months.
Also, the due date for the tariff update is June 27. Without the update, your company could receive a non-compliance penalty. Please contact Moving Authority for more information about tariffs. Remember to follow all new rules and regulations related to hostage situations. Also, make sure you understand how to apply binding and non-bonding estimates. You can book a consultation with Moving Authority at any moment. An expert will explain the rules and laws in detail. This way, your company can maintain compliance.
FMCSA Policy §375.501: Movers Must-Have Shippers Sign All Estimate-Related Documents Before Loading Shipments
The FMCSA has revised policy §375.501 due to the prevalence of software companies. There is still a rule that movers must have hard copy paperwork ready. The paperwork must get signed, per §375.501. Unfilled or bank documents cannot exist in these transactions. Documents must get presented to the shipper before the landing phase. This way, the shipper can view all relevant or extra charges.
Lack of adherence to this policy is a violation. The FMCSA has made it clear what it will and will not allow. The majority of software providers for the moving industry are not in compliance. That is why updates to the law have taken place. Negligence of carriers will not become tolerated by the FMCSA.
Regulatory Guidance: Movers of Household Goods Requires Shipper To Sign Blank/Incomplete Document
The FMCSA states that a consumer does not have to sign a blank or incomplete document. All documents presented to a consumer must get filled out in a complete manner. This has to take place before loading of any shipment. Carriers cannot enforce shippers to sign incomplete documents.
Say that a document is blank. The FMCSA considers this omitted information of the shipment. This leads to increased violations, fines, and suspensions. They affect carriers committing the offenses. Say that the shipment terms need to change. A mutual agreement between shipper and carrier takes place. This leads to an amendment of the estimate. The shipper must sign a new paper estimate before a carrier loads the shipment. This cannot happen after loading a shipment.
78 Fed. Reg. 19568: Limited Service Exclusion (Household Goods Motor Carriers/Related Registration Requirements for Brokers)
The LSE must get determined on a case-by-case basis. This way, the relationship between motor carrier and individual gets examined. This is a crucial step in the household goods regulation sector. Say a moving company/broker claims a container will get provided by a packing specialist. Or, that the organization does not provide certain services. Any new information goes into the bill of lading. This applies even if a different carrier will complete a job. The relationship must get stated in a clear manner that a consumer can read.
This law gets issued by Congress. Then, it gets enforced by the FMCSA. Why? So that household goods moving cannot evade regulation oversight. The agency will examine any company statements on the Internet or in advertising. This applies to the notion of claiming full-service moving. The FMCSA will check if a carrier does not hold eligibility for the LSE. The policy also applies to people loading/unloading household goods on a shipment.
Policy Change: Implementation of Household Goods Work Group Recommendations 87 Fed. Reg. 24431
The FMCSA amended these regulations. They now incorporate the consumer protection group. This is to educate, simplify and reduce problems. The agency amends the recommendations on rule making. This way, agency authority gets put in place. This new agency can make changes to transportation/moving company regulations. It can also change broker regulations to increase consistency. These new regulations can help individual shippers.
These FMCSA rules go into effect on June 27. 2022. This includes the Regulatory Flexibility Act (small entities). It also includes the Unfunded Mandatory Reform Act of 1995 and the Privacy Act. So, why was the working group established? It was to streamline consumer complaints. Then, pass them over to the correct agencies. This way, laws, and regulations become clear. In turn, inspections and audits can get streamlined for organizations. This is also to increase consistency with consumer complaints. This law also includes the 50-mile radius law radius (on-site survey). If the shipper is farther than 50 miles, a virtual estimate must take place.
The FMCSA makes the following rule clear. Companies have to maintain a record of the time, date, and manner of all new estimates. This applies to preparing shipping estimates for customers. The policy correlates to § 375.405(b)(7)(ii). Section 375.211. Plus, each carrier needs to have an active arbitration program. Every motor carrier has to create and issue the bill of lading. This takes place before any household shipment gets received. The rule applies to all aspects of a shipment including transportation.
Don't Get Put On FMCSA National Household Goods Top 100 Compliance Operation
The FMCSA has made changes to its Top 100 Compliance Operation. The 2020-2021 consumer complaint database featured more complaints. In fact, an increase took place of 8,300 complaints. Fines increased 62 percent in carrier investigations. Due to these new laws, the FMCSA takes the responsibility of protecting consumers. Its mission is to assist all consumers within the moving industry. Protetcyourmove.gov is a website to educate consumers. That is where they can learn their rights and responsibilities. Congress has set forth new moving and storage complaint-related laws and regulations. The FMCSA will issue fines to carriers that do not comply.