1. “ROGUE OPERATORS”, REGULATIONS & CONSUMER PROTECTIONS Tuesday, October 8 th, 2013 3:00pm – 4:00pm

2. JENNIFER M. GARTLAN (Unable to Attend) Deputy Director, Office of Consumer Affairs & Dispute Resolution Services (CADRS) Federal Maritime Commission

3. MONIQUE RIDDICK Transportation Specialist Federal Motor Carrier Safety Administration

4. Commercial Enforcement and Investigations Division Presentation by: Monique Riddick Commercial Enforcement and Investigations Division

5. Federal Motor Carrier Safety Administration FMCSA Household Goods Compliance and Enforcement Program We endeavor to better protect the consumer from moving fraud by educating consumers, working with Industry to provide High Standards, and by removing bad actors through our enforcement efforts.

6. Commercial Enforcement and Investigations Division Program Structure  Headquarters Program Management Policy Development Outreach and Education  Field Provides the Enforcement Component for the Program Spearheaded by Commercial Enforcement Specialists strategically located around the United States

7. Commercial Enforcement and Investigations Division Program Outreach Initiatives  2013 Moving Season Marketing Campaign – March through September.  Red Flags Campaign  Moving Fraud Prevention Checklist  Updated www.protectyourmove.govwww.protectyourmove.gov  Updated “Your Rights and Responsibilities When You Move” booklet.

8. Federal Motor Carrier Safety Administration Commercial Enforcement and Investigations Division Red Flags of Moving Fraud

9. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration Red Flags of Moving Fraud  Your Rights and Responsibilities When You Move booklet not provided  No local address, license or insurance on website  No company name offered when office is called  Poor office and warehouse conditions  Generic Rental Truck  Doesn’t offer or agree to a physical survey  Moving company demands cash or a large deposit before the move

10. Federal Motor Carrier Safety Administration Commercial Enforcement and Investigations Division Moving Fraud Prevention Checklist

11. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration Moving Fraud Checklist  Check if the mover or broker is registered with the FMCSA.  Check the complaint record of a mover or broker.  Avoid movers that do not show U.S. DOT# or MC# in their advertisements.  Read the booklet “Your Rights and Responsibilities When You Move.”  Movers or brokers must give written estimates.  Do not sign blank or incomplete documents.  Understand the type of liability signed for.  Supervise loading and unloading or appoint a representative to act for you.

12. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration www.protectyourmove.gov Modernized Web Site New PSA Detailed information to assist the consumer Greater than 12 million hits in 2013

13. Commercial Enforcement and Investigations Division Your Rights and Responsibility When You Move Booklet

14. Commercial Enforcement and Investigations Division Your Rights and Responsibilities When You Move  Your Rights and Responsibilities When You Move booklet has been updated to be more user friendly and will work in a digital format.  It is posted on www.protectyourmove.gov, available for download so you can distribute the booklet to your customers in either hard copy or digitally.www.protectyourmove.gov

15. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration State Partnerships Implemented a HHG State Enforcement Partnership Program to help combat moving fraud

16. Federal Motor Carrier Safety Administration Commercial Enforcement and Investigations Division Current State Partners Texas Department of Motor Vehicles Louisiana State Police Ohio Public Utilities Commission

17. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration Federal Partnerships Federal Maritime Commission (FMC )

18. Federal Motor Carrier Safety Administration Commercial Enforcement and Investigations Division Close Working Relationships Surface Transportation Board (STB) Federal Trade Commission (FTC) Office of Inspector General (OIG)

19. Commercial Enforcement and Investigations Division Moving Fraud and Rogue Carriers are a Serious Problem  These companies are blatantly violating Federal and State laws.  They are preying on Consumers.  They give the moving industry a bad name.

20. Commercial Enforcement and Investigations Division Impact of Moving Fraud  Financial loss  Property loss  Business denied to legitimate moving companies  State and local governments cheated of revenue

21. Commercial Enforcement and Investigations Division What is FMCSA doing about Moving Fraud and Rogue Carriers? Implementing the legislation that gives the agency more authority to attack and solve very difficult problems. Safe Accountable Flexible Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU) Moving Ahead For Progress in the 21 st Century (MAP-21)

22. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration SAFETEA-LU On-site estimate – 50 mile radius of shipper Liability – full value protection unless waived Arbitration threshold - $5,000 to $10,000 Broker estimate w/o agreement - $10,000 fine Unauthorized transportation (broker or carrier) - $25,000 fine

23. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration SAFETEA-LU cont. Hostage Loads Shipments held Hostage - $10,000 civil fine Suspend authority – for 1 year but not more than 3 years Criminal fine under Title 18 and imprisonment not more than 2 years

24. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration MAP-21 As of October 1, 2013, brokers and freight forwarders subject to FMCSA jurisdiction are required to have a $75,000 trust fund or surety bond in effect and on file with FMCSA. Rule Making is located at 78 FR 60226. BMC-84 and BMC-85 forms have been revised.

25. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration MAP-21 cont.  Exam requirement to enter the industry HHG Motor Carrier planned for October 1, 2014. Broker in effect since October 2012, but may demonstrate industry experience in lieu of exam.  Hostage Loads – May require motor carriers to return HHG being held hostage and pay the victim all or a portion of the fine imposed.

26. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration Moving Fraud Task Force Objectives:  Identify the very worst Rogue Movers and Brokers.  Gather the necessary evidence to remove Rogue Movers from the Industry while closing complaints.  Using all of the Agency’s Authority to initiate and follow through with strong, solid enforcement actions removing those Rogue Movers from the Industry.

27. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration Moving Fraud Task Force  Focuses on the absolute worst in the Industry.  Focuses very limited resources to make the most impact.  Endeavors to be the most effective while being the most efficient.  Puts into action the Administrator’s mandate to Maintain Standards and Remove Bad Carriers from the road.

28. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration National Consumer Complaint Database (NCCDB)  The NCCDB is the primary source for investigative data.  Centralized depository of Interstate Household Goods Complaints.

29. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration NCCDB Statistics Fiscal Year  2011 – 2,868  2012 – 3,083  2013 – 2,921 Fiscal Year  2011 - 666  2012 - 441  2013 - 363 HHG Complaints Hostage Loads

30. Commercial Enforcement and Investigations Division Hostage Loads  Making hostage load complaints a priority. Commitment to review hostage load complaints that come into the National Consumer Complaint Database (NCCDB).

31. Commercial Enforcement and Investigations Division Federal Motor Carrier Safety Administration Division Contacts  Kenneth Rodgers – Division Chief (202) 366-0073/ Kenneth.Rodgers@dot.gov  Brodie Mack – HHG Team Leader (202) 366-8045 / Brodie.Mack@dot.gov  Monique Riddick – Transportation Specialist (202) 385-2414 / Monique.Riddick@dot.gov

32. “ROGUE OPERATORS”, REGULATIONS & CONSUMER PROTECTIONS Tuesday, October 8 th, 2013 3:00pm – 4:00pm