Reasons a Moving Company is Revoked by USDOT
Why a Moving Company is Revoked by USDOT
- There Are A Number of Reasons Why a USDOT License is Revoked
- Criminal Charges Filed Against The Company
- Invalid Insurance Coverage
- Safety Complaints From Consumers Or Employees
- Failing to Have An Active Yearly Arbitration Program
- Not Having A Published Tariff Visible Inside The Office
- Operating As An Unlicensed Mover
- Importance of Operating Legally
- A Moving Tariff Is Required: This Outlines the Line Haul
- Send the DOT Your Published Tariff & Get Into An Arbitration Service
- Protecting Consumers From Rogue Movers
- Pay Attention to Detail: The DOT Has Many Laws
- Arbitration is a MUST!
- What is Arbitration?
- The DOT & FMSCA Are Regulating Household Goods Movers
- Moving Authority Can Help You Be Completely Compliant
1. There Are A Number of Reasons Why a USDOT License is Revoked
Many carriers and consumers may wonder why a USDOT license is revoked. When a license is revoked, the carrier is not allowed to operate until they have fixed the issue that caused the license to be revoked. Here, we will look at possible explanations and reasons as to why the license is revoked. Moving Authority understands that moving your household goods is a scary time for many people. Our caution banner helps to ensure that you do not fall into criminal or financial trouble when working with a household goods moving company. It is our goal to make sure that all of the companies we work with have the proper insurances required to move. A moving company can have their license revoked as a result of:
2. Criminal Charges Filed Against The Company
A moving company can have criminal charges brought up against them if they attempt to create a bait and switch in their operations. Another common criminal charge arises when a moving company attempts to fraudulently charge the consumer. Stealing is also a common practice for many illegitimate and poorly-run moving companies. A criminal charge of any kind must be resolved in order to reinstate a USDOT license.
3. Invalid Insurance Coverage
Carriers can have their licensing revoked if they fail to have to proper insurance coverage that is needed to operate, as required by the USDOT. They cannot have their license status reactivated unless they get the proper insurance coverage.
4. Safety Complaints From Consumers Or Employees
A moving company is mandated to operate under certain safety rules and regulations. If these rules are not followed, the carrier runs the risk of having their license revoked by the DOT. Safety complaints can arise when the company is found to be operating with unsafe vehicles, or if long distance drivers work more than the legal limit, as set by the FMCSA and USDOT.
5. Failing to Have An Active Yearly Arbitration Program
If a USDOT audit reveals that the company does not have an active arbitration program, then they can have their USDOT license suspended. They need to activate their arbitration program in order to have the license reinstated.
6. Not Having A Published Tariff Visible Inside The Office
It is common for new carriers do not to have a moving tariff, which is essentially a list of prices for services performed. A USDOT audit can reveal that a valid tariff is not present in the office or base of operations. Moving Authority gets at least two calls a week regarding moving companies that have this issue. The only solution for this issue is to create a proper moving tariff with the assistance of a professional tariff builder.
7. Operating As An Unlicensed Mover
Sometimes, carriers will pause their USDOT license coverage and make coverage inactive. Carriers who operate in colder climates tend to do this during winter months when there is less happening in terms of moving and relocation. When cooler months pass and companies begin operation again, some companies fail to reinstate their USDOT status. If a complaint arises when the company is not active in the USDOT system, the result is a fine of up to $25,000, which is charged to corporate shareholders, as well as a suspension of license.
In the end, there are a lot of different causes for the suspension of a USDOT operating license. When it comes to moving, it is always best to ensure that you are operating with trusted relocation experts. The Moving Authority caution banner is intended to help you pick the correct mover while not choosing companies that are not properly licensed and insured.
8. Importance of Operating Legally
Americans are on the move with 1.6 million people moving state to state each year. As everyone in the moving industry knows, moving season is about to heat up, as May-August is when most of these moves are taking place. With so many potential customers, it is important for everyone in the moving industry to maintain the regulations under the USDOT.
9. A Moving Tariff Is Required: This Outlines the Line Haul
All moving companies are legally required to have a moving tariff agreement made up before they begin operating a moving company. Essentially, this is an official list and schedule that outlines all the agreed upon line haul. Line haul is a term that states where the moving truck is going. This covers a range of items like the distance between one location to the other, pricing, specialty services, packing materials, revised estimates or any other services required by that specific moving company. It is important to also have a custom built tariff to make sure the moving corporation has all their needs met.
10. Send the DOT Your Published Tariff & Get Into An Arbitration Service
It is of the utmost importance to be aware that the DOT has recently changed their application for moving household goods carrier authority. Now, any movers must obtain a government issued DOT number before they start moving any items. The DOT has added a new requirement: moving companies must send the DOT a copy of their published tariff. In addition, movers also need to have an Arbitration service set in place before they start moving. Arbitration for movers generally settles any legal disputes through a mediator (arbitrator) instead of in a court.
11. Protecting Consumers From Rogue Movers
All these changes are to protect Americans from problem carriers and rogue movers. It is to make sure that everyone and all their belonging arrives safe and sound. There has been a strong reduction in moving fraud and reports of rogue movers in the year 2015. This was relayed to the public at the USDOT at the Fraud Conference hosted by the Texas Department of Motor Vehicles in Austin in April 2016. It is the organization's goal to keep this trend of unlicensed or fraudulent cases arising going down within the moving industry. If you are a new carrier that wants to haul household goods, I strongly advise you to make sure to follow the new rules set by the DOT. This way you reduce your chances of fines, cancellation of authority, or audits by a DOT agent or agents.
12. Pay Attention to Detail: The DOT Has Many Laws
When starting a moving company, there are many factors to consider as you start your business. There is a lot of red tape and legal issues that movers have to comply with. Due to this, it is very important to have all your bases covered. This way you follow all the USDOT rules and regulations which will ensure smooth sailing (or driving) for your business.
13. Arbitration is a MUST!
One of the main questions that movers have is if they are required to have an Arbitration program in place before they can legally start (or continue) business. The answer is YES! In the past, it was not required but over the years the court systems have been overcrowded with legal battles between movers and their clients. This is why it is now required by law to have a moving arbitration program in place before you even load your first truck or bubble wrap your first lamp.
14. What is Arbitration?
Arbitration is the settling of a case by a neutral arbitrator who can help mediate legal negotiations without having to go to court or use costly lawyers. Compliance with the law is key to keeping your company out of future trouble. It will save you from hefty fines if an officer of the DOT inspected your company and you were operating without it.
15. The DOT & FMSCA Are Regulating Household Goods Movers
On top of the DOT, The Federal Motor Carrier Safety Administration (FMCSA) regulates companies that are interstate household goods movers. They also define the rights of both the household goods movers and the consumers. In fact, they are also regulating if companies follow the Arbitration rule to ensure that all parties are operating within the law.
16. Moving Authority Can Make You Completely Compliant
It may seem like a lot of paperwork or red tape but all these laws are in place in the event that you and your business run into any problems with clients in the future. With Arbitration in place, you will be able to save yourself time and money working with an arbitrator rather than having to go to court.