The moving and storage industry can lend itself to problems. Why? Because organizations are dealing with and handling people’s goods. If a moving company does not handle someone’s goods well, it can be detrimental to both sides. This is why it is important to protect your business against unexpected events. They can occur at any moment. Since 1996, arbitration is now a law to become a licensed household goods carrier with a USDOT number. Without a USDOT number, a company will get considered to be an unlicensed carrier. This creates many different problems. For one, operating with this standing is illegal. Also, customers are aware of your standing before choosing their preferred moving company.
Checking whether the company someone would like to use gets licensed is important. In fact, this is one of the most important aspects of dealing with a moving company. Say a company does not have a license. This means the moving company is performing illegal moves. Thus, you can’t trust the organization with your belongings. They will not hold themselves accountable for any damages or losses to your items. This will hurt two important factors related to your moving organization. 1. Your business’ finances. 2. Your business’ reputation. Say that you do not follow the proper rules of a licensed mover. Customers will spread the word via testimonials and reviews. You then won’t get considered to be a trustworthy moving company any time soon.
The Department of Transportation (USDOT) takes care of household goods arbitration programs. The programs are now featured in many industries of today. Transporting goods across state lines without arbitration involvement is illegal. The same concept applies to transporting them cross country without needed involvement. Why are these actions illegal? Because you are not following the rights of the shipper. You then risk receiving fees. That’s because you violated the government’s rules.
People often ask what an arbitration program does for them and if it is binding. Any company that is a transporter of household goods needs to have a legal way to deal with any disputes that may arise between a company and a client. This is the customer’s right by law. Either the company or the client can ask for the use of the arbitration services that are in place. These arbitration services are a way to settle disputes outside of a courtroom. An arbitrator is a neutral third party that can settle a dispute and helps the two parties come to an agreement.
The arbitrator also determines what each party has to pay for with the services. Keep in mind that the shipper cannot pay more than 50% of the costs. If the client asks to go to arbitration, the mover is bound by the law to go for claims of $10,000 or less. The arbitrator must reach a decision within 60 days. The decision can include any remedies to the dispute that gets deemed appropriate. That 60-day period can get extended. And there are two reasons for this. 1. If the mover does not provide the needed information on time. 2. If the mover does not provide that information in a clear and concise manner.
Make sure that your moving company is in compliance with the law. Double-check that is has purchased an arbitration program. It has to presented a brochure outlining your program to every client. This has to take place before any moving job begins. Understanding the law will help you operate a legal and successful business. It’s important to remember that you must remain up to date with all the current laws of the USDOT . This is to ensure that your business runs well in an ethical, legal manner. Doing so will help your business expand both in size and profitability.
Please contact our firm today to learn more about arbitration programs. We can teach you the best tactics to interact with any responding party. Our goal is to reduce your fees while restoring order to your moving program. Speaking of order, has the government given you an award or order that you don’t understand? If so, our team will assess the claim and all relevant information. We’re even creating an online forum where clients can get claims and fees evaluated. In the meantime, please check out related articles on our website. We we will soon release relevant content that includes:
-More information about arbitration programs
-More information about claims and rules
-Rules, fees, and awards criteria for each state
-More information about requests that shippers receive
-How to deal with the responding party
-Moving claims dates to pay attention to
-When companies have to pay an amount over $50,000
-When moving companies have to pay $10,000 or less
-The award or order that your team should pay attention to