The Interim Final Rule

1
The Interim Final Rule
Transportation of Household Goods Consumer
Protections RIN 2126-AA32
May 5, 2004
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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• The interim final rule
• ? Amends (49 CFR Part 375) regulations governing
  the interstate
• transportation of household goods.
• It impacts
• ? Approximately 4,000 active household goods
  carriers.
• ? Approximately 600,000 moves each year.
• Represents 40 percent of the moving industrys
  business.
• The other 60 percent are self-haul, intrastate,
  corporate, and government moves that either have
  not been regulated (self-haul and intrastate) by
  the Federal government or were de-regulated in
  1995 (corporate and government).

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32
Why an Interim Final Rule? ? Office of
Management and Budget (OMB) wanted to have an
opportunity to review the information
collection requirements. ? OMB completed
its review and approved the information
collection requirements on June 19, 2003.
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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Background
• 1940-1995 The Interstate Commerce Commission
  (ICC)
• administered household goods regulations.
• 1996 Congress terminated the ICC and transferred
  the household goods program to the Federal
  Highway Administration (FHWA).
• 1998 FHWA published a Notice of Proposed
  Rulemaking requesting comments on its proposal to
  update the household goods regulations.
• 1999 Congress authorized FMCSA to regulate
  household goods carriers engaged in interstate
  operations in the Motor Carrier Safety
  Improvement Act of 1999.

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• The interim final rule
• ? Establishes parameters of fair dealing for
  movers.
• Specifies how interstate household goods
  carriers
• (movers) must assist their individual
  customers who
• ship household goods.
• Provides a reasonable level of protection to
  consumers of
• household goods moves.
• ? Seeks to equip consumers with information
  adequate to
• make informed decisions about moving their
  household
• goods.
• ? Extends many regulations to household goods
  brokers.

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• The interim final rule
• ? Updates the regulations to make them easier
  to understand.
• ? Question and answer format

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• This interim final rule
• ? Ensures consumers are aware of the movers
  liability for loss or damaged goods
• ? Specifies what must be in agreements with
  agents
• ? Specifies what must be in advertisements
• ? Specifies what must be in complaint and
  inquiry systems.
• ? Requires a mandatory dispute settlement
  program for loss and damage claims

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32
This interim final rule also requires specific
procedures in the ? Transportation of
Shipments ? Reasonable Dispatch ? Delivery
of Shipments ? Collection of Charges
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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• This interim final rule requires
• ? Consumers are furnished a copy of Your
  Rights and
• Responsibilities when You Move when
  estimates are provided
• ? Written estimates
• ? The following documents must be provided to
  consumers in
• writing before loading
• Order-of-Service
• Inventory
• Bill-of-Lading
• Weighing of non-binding shipments
• If the charges are based on weight

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Your Rights and Responsibilities When You Move
  
• ? This pamphlet provides basic information to
  help the consumer understand the documents the
  mover will ask consumers to sign.
• ? Explains the consumers rights if their
  household goods are lost or damaged by the
  mover.
• ? Copy is available on the FMCSA Web site at
  www.fmcsa.dot.gov

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Your Rights and Responsibilities When You Move
  
• Includes the following topics
• What is included in the Pamphlet
• General Requirements
• Before Requesting Services from any Mover
• Service Options Provided
• Estimating Charges

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Your Rights and Responsibilities When You Move
  
• Includes the following topics - continued
• Pickup of My Shipment of Household Goods
• Transportation of My Shipment
• Delivery of My Shipment
• Collection of Charges
• Resolving Disputes with My Mover

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Your Rights and Responsibilities When You Move
  
• Important Points
• ? Movers must give written estimates.
• ? Movers may give binding estimates.
• ? Non-binding estimates are not always accurate
  actual charges may exceed the estimate.
• ? You should not sign blank or incomplete
  documents or allow anyone representing you to do
  so.

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32
Your Rights and Responsibilities When You Move
Important Points ? You may request a
guaranteed pick up and delivery date. ? Be sure
you understand the mover's responsibility for
loss or damage. ? Request an explanation of the
difference between valuation and actual
insurance.
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Transportation of Household Goods Consumer
Protections RIN 2126-AA32
Your Rights and Responsibilities When You Move
Important Points ? You have the right to be
present each time your shipment is weighed.
? You may request a reweigh of your
shipment. ? If you agree to move under a
non-binding estimate, you should confirm with
your mover-in writing-the method of payment at
delivery as cash, certified check, cashier's
check, money order, or credit card.
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Transportation of Household Goods Consumer
Protections RIN 2126-AA32
Your Rights and Responsibilities When You Move
Important Points ? Movers must offer a
dispute settlement program as an alternative
means of settling loss or damage claims. ASK YOUR
MOVER FOR DETAILS. ? You should ask the person
you speak to whether he/she works for the
actual mover or a household goods broker. ? A
household goods broker only arranges for the
transportation. ? A household goods broker must
not represent itself as a mover. ? You should
know a household goods broker generally has
no authority to provide you an estimate on
behalf of a specific mover.
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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Your Rights and Responsibilities When You Move
  
• Important Points
• You may request complaint information about
  movers from FMCSA.
• ? You should seek estimates from at least three
  different movers.
• ? You should not disclose any information to the
  different movers about their competitors, as it
  may affect the accuracy of their estimates.

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Enforcement
• ? FMCSA has the authority to enforce this
  regulation.
• ? Penalties will be assessed as provided by 49
  U.S.C. Chapter
• 149, Civil and Criminal Penalties.

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Enforcement
• ? To address industry concerns, FMCSA will
  implement an enforcement policy to reflect the
  following
• No enforcement of HHG shipments contracted before
  May 5, 2004.
• All shipments contracted for on or after May 5
  will be subject to he new requirements.
• Enforcement of regulatory provisions requiring
  changes to forms (e.g. bills of lading) will
  begin on July 1, 2004.
• Distribution of the revised Your Rights and
  Responsibilities When You Move pamphlet must take
  place beginning on May 5, 2004.

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Transportation of Household Goods Consumer
Protections RIN 2126-AA32

• Consumer Assistance
• ? A complaint can be filed against the mover by
  
• ? Calling FMCSAs consumer complaint hotline
  (1-888-368-7238) between the hours of 1000 a.m.
  and 600 p.m. eastern time, Monday through
  Friday, or
• ? Accessing the FMCSAs Web site at
  www.fmcsa.dot.gov
• ? The complaint may trigger a Federal
  enforcement investigation
• against the mover.
• ? FMCSA does not have authority to resolve
  loss and damage claims
• against a moving company.
• Appropriate settlement remedies, include
• Use of movers dispute settlement program
• Litigating in the appropriate civil court