Arizona Legislature Passes Bill Taking Aim at Predatory Moving Companies

On Tuesday, the Arizona House of Representatives passed HB2145 intended to prevent moving companies in Arizona from holding a customer’s possessions hostage over a payment dispute. The legislation was sponsored by Rep. Jeff Weninger.

The bill passed on a 56-0-3-0-1 vote.

Currently, the Consumer Fraud Act “stipulates the unlawful acts and practices that constitute a violation of Arizona law. A.R.S. § 44-1522 states that any deception or unfair act or practice, fraud, misrepresentation or omission in the sale or advertising of merchandise is an unlawful practice whether or not a person has actually been misled, deceived or damaged. The Attorney General’s Office may investigate and prosecute violations,” according to the legislative record.

The Federal Motor Carrier Safety Administration is the federal agency that regulates interstate moving companies and allows a consumer to verify that a mover is federally licensed. The website information and available booklets outline a consumer’s rights and responsibilities, including remedies for violations of law.

HB2145 Provisions

Unlawful Moving Practices

1. Prohibits a Moving Company that provides in-state moving services from refusing to deliver or unload a person’s household goods, threatening or placing a carrier’s lien on the goods. Details the exceptions.

2. Requires a Moving Company to accurately disclose all fees, rates and charges, including the scope of the insurance coverage for lost or damaged goods.

3. Deems a violation an unlawful practice of the Consumer Fraud Act, which the AG may investigate and take appropriate action.

4. Subjects violators to civil or criminal action and any other penalty provided by law.

5. Stipulates that a written estimate or contract that includes disclosure of a carrier’s lien is not considered threatening to enforce a carrier’s lien.

Exemption Qualifications

6. Outlines the requirements for a Moving Company to qualify for an exemption from the unlawful moving practices provisions; both the consumer and the Moving Company must sign/date a written contract that includes specific details and a disclaimer statement.

7. Requires the Moving Company to give the consumer a copy of the written contract before providing moving services that contains the following:

a. List and schedule of moving services.

b. Location of the household goods and the moving destination.

c. Name, phone number and physical address of the Moving Company and the consumer.

d. Detailed list of fees the consumer must pay.

e. List of terms and conditions for full payment of services and a notice of minimum charges.

f. Acceptable forms of payment for moving services.

g. Statement declaring if there is reimbursement for lost and damaged goods, including an explanation and process for reimbursement.

h. Estimated total price and other anticipated fees and charges for services.

i. Disclaimer statement acknowledging: 1) the Moving Company may refuse to deliver or unload until the total price in the contract is paid; and 2) the consumer may cancel the contract at any time before the Moving Company provides services.

Delivery and Unloading Household Goods; Exemption

8. Allows a Moving Company that complies with the stated provisions and transports goods to the moving destination to:

a. Require full payment of the contract, minus any previously collected amount, before delivery of the household goods to the consumer, except as outlined.

b. Deliver and unload the household goods upon full payment of the contract amount.

c. Refuse to deliver or unload household goods until the consumer pays the total estimated price, but requires reasonable care to protect the merchandise until it is properly delivered.

9. Specifies requirements pertaining to methods of payment.

10. Authorizes law enforcement to take possession of household goods or instruct the Moving Company to make the delivery if it unlawfully fails to deliver or unload the consumer’s goods.

11. After the contract is initially signed, directs the Moving Company to provide written acknowledgment to the consumer of any fees for additionally requested services and outlines specific requirements.

Miscellaneous

12. States that the rights and requirements outlined in this measure cannot be waived.

13. Subjects the Moving Company to the unlawful moving practices provisions when the Moving Company fails to comply with all stated requirements.

14. Entitles a Moving Company to pursue collection of any unpaid amount after properly delivering and unloading the consumer’s household goods at the moving destination.

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