When booking in advance – a holiday, a flight, a hotel stay, a restaurant table, a cinema ticket, etc. – you’re often required to put some money down to secure the service. It’s only logical then that you may be asked for a down payment when booking a move as well – the movers need a guarantee that you won’t bail out and cancel the job at the last moment, costing them money in lost time.
Charging a moving deposit is a standard practice – many moving companies request a down payment to reserve a moving date, especially during peak moving season when their services are in high demand. It is a kind of insurance for the movers – if the customer cancels the move, they will have some compensation for their lost profit opportunities. The moving deposit, however, should be only for a small amount and should be refundable with sufficient notice of cancellation.
So, when looking for moving help and comparing the services of different moving companies, you’re strongly advised to compare their payment policies as well and find out if they charge a deposit or not before making your choice.
Do moving companies require a deposit?
It is not uncommon for a moving company to request a small down payment to hold a moving date, but not all movers charge a deposit – it’s up to the company. According to the law, every individual mover is allowed to set their own rules for deposits and terms of payment (the mover, however, is obligated to disclose these rules and terms to each customer in writing).
Therefore, charging a moving deposit gives no indication of the legitimacy or trustworthiness of a company – a good mover is equally likely to request or not request a deposit.
Yet, practice shows that most reputable companies do ask for a deposit, especially in big cities where the rate of house moves is very high.
Why are moving company deposits required?
Most moving companies have reservations calendars that help them plan their time and available resources, so that they can accommodate as many moving jobs as possible and provide quality services to their customers. This is especially important for reputable movers:
- Their services are always in high demand, so they need to be very careful when scheduling their time and accepting new jobs;
- They care about their good reputation, so they always keep their commitments.
Any last-minute changes to their reservations calendars disrupt the movers’ work and may affect other customers, so the moving companies want guarantees against such changes. They collect deposits to make sure that a customer won’t cancel the booking at the last moment – moving services take a lot of time and cost a lot of money, so the companies don’t want to send a crew only to find out that the customer has already moved or hired another carrier. The collected deposit is meant to compensate the losses incurred in such case.
So, a moving company deposit means commitment – both from the movers and the customers. It also provides some assurance of the reliability of the moving company – a carrier that requires a deposit is likely to be busy and being busy usually means that the company is thriving and successful and trustworthy.
Paying upfront, however, is always a risk – some rogue movers may simply disappear with the money. Besides, advance payments further complicate the process and may result in lots of headaches if you need to cancel the move.
What is a reasonable moving house deposit?
As already mentioned, asking for a deposit has become a common movers’ practice all over the country. Yet, every moving company sets their own terms and conditions and has its own policy. Therefore, the amount of the requested moving deposit may vary from one mover to the other and from one location to the next:
- The more expensive the city or state is, the higher the deposit will be because the cost of moving labor will be higher;
- The down payment amount will be larger when moving on a weekend or during the busy summer months;
- Deposits for long distance moves will be higher than deposits for local moves;
- The required amount will depend on the size of your move as many movers base the deposit on a percentage of the final moving cost.
In any case, however, the deposit should be a few hundred dollars at most – anything between $100 and $500 is considered reasonable. Larger down payments are not typical and should be seen as red flags of moving fraud.
Are moving deposits refundable?
It all depends on the moving company cancellation policy, but moving house deposits are typically refundable within a certain period of time.
In most cases, you will get a 100% deposit refund (with two weeks’ cancellation notice) and no reschedule fee (provided that you notify the company at least 5 business days in advance). If your new moving date doesn’t fit the moving company schedule, the deposit may or may not be refunded, depending on the company’ policy and the time-period of your move.
You’re strongly advised to check if deposits are refundable or not (ask about the company’s deposit policy and cancellation notice requirements) BEFORE booking your move, so that you don’t lose your deposit money in case you need to change your moving date or cancel the move.
Good to remember: The cancellation notice must be postmarked and mailed to the moving company by prepaid US Registered or Certified Mail, return receipt requested. No letters sent by regular mail and no e-mails, facsimile or telephone calls are deemed to be proper cancellation notifications.
What to be careful about when asked for a moving deposit?
While there’s nothing wrong with a mover asking for a down payment, you should be aware that:
- The deposit has to be for a small amount – Moving company deposits should not exceed 25% of the final moving cost. If a mover requires you to pay half of the total costs upfront, then it is likely that you are being scammed. An honest and reliable mover will never ask you to put down a large amount of money before the move takes place;
- The deposit is not a separate fee and should go toward the final cost of the move;
- Moving brokers always require deposits. The down payment, however, may not go towards the move itself – brokering companies often charge separate deposits that are used as fees for arranging the transportation of the household goods. You may think that you’re paying the moving company, but in fact you’re paying the middleman and may not even know who the movers are until the day of the move. Besides, when working with a with a moving broker, you may get an estimate that is much lower than the actual price you’ll have to pay for your move, as brokers usually give estimates online or over the phone and such estimates can never be accurate (click here to find out how to get an accurate moving estimate);
- Never pay the required moving deposit in cash – use a check or a credit card. It will be much easier to recoup your deposit this way (if it comes to that).
Good to remember: Do not assume that a moving company is operating a scam just because they request a deposit. However, do not pay any money or sign any documents until you have researched the company either. Verify the carrier’s licensing and insurance information, check their business rating, read moving reviews left by previous customers of the company, ask for references and recommendations, check the company’s complaint history, and examine the mover’s paperwork. If everything checks out, then you have nothing to worry about and the required deposit is just a guarantee of the finalization of the deal. Have a safe and smooth relocation!
I have a mover requiring 100% paid up front. That amounts to $15,000. That’s a lot of up front money
Me too, I just hit the same thing on a long-distance move. Even assuming it’s not a moving scam, I’m uncomfortable as hell. The movers have all your stuff…which is their guarantee that they’ll be paid in full; they can insist on payment in full before they move your things into your new house. So they have all the leverage they need. I, on the other hand, have no leverage if I’ve pre-paid in full and my things are handled carelessly, if it takes much longer than they stated and I rack up hotel bills while waiting for my things to arrive, etc. Sure would appreciate if anybody has any insight into how normal this practice is?
NEVER, I repeat NEVER pay for the total move up front – local or long distance. You have no guarantees!! Having worked for a moving company for years, on long distance moves we ask for 50% of the move once our trucks are loaded and ready to go. The other 50% is required once all your belongings have been delivered to your new home. Paying someone the full fee upfront is insane and I can’t believe anyone out there is actually getting away this this – meaning still in business!
DON’T EVER USE COLONIAL MOVING & STORAGE LLC
3910 Nw 3rd Ave
MIAMI FL 33127
US DOT: 3377857 MC: 1083704
They are a fraud. They are definitely not a carrier, they are a broker. They also try as hard as they can to not refund your deposit which is WELL OVER $500. Their website is not secure as well: Colonialmovesyou.com
BEWARE OF THEM. Also if you check their profile on FMCA they have MANY complaints for deceptive business practice
https://ai.fmcsa.dot.gov/hhg/SearchDetails.asp?ads=&id=30398286&id2=32298167&f=search%3D3%26CNS%3D1%26CN%3Dcolonial%26DOT%3D%26MC%3D%26Submit%3DSearch
After getting a quote from Starving Students Movers I was asked to make a deposit for my move for $100 which I gave the information over the phone. I was told it was refundable. I send them an email about 4 days ago with questions about the move but still haven’t heard back from them. It’s making me nervous.
Is it legal for a moving company say their moving company if they are third party or brokers?
Is it legal that they did not disclose it to the customer? If they did not disclose their refund policy is 24 hrs from the time you talk to them?
I put the deposit on my credit card, and now I put a claim. They did not disclose that to me and that they didn’t own a truck.
What does US DOT: #. And What Does MC: # ??
Does this proof they owe a moving truck?
I got swindled on my 680$ deposit. Allstates moving and storage, 15 Sinomac rd north haledon NJ 07508. 844-534-8403
DOT 3328867 MC 106045
I never moved, so I cancelled way ahead of time. And requested for refund as this was stated on our agreement. For a while they said that the accounting department is processing my deposit and eventually just stopped picking up the phone.
Do not use Evergreen. They gave me a quote for a long distance move I put a deposit then they double the estimate I could not afford it and they kept my deposit
Same thing happened to us was given a quote of $6,500. And put down $3,500 for a deposit. Then they told us it was going to cost us $15,000 to actually move us and it’s too late to get a refund.
Perennial van lines will scam you out of your money too. They took $800 from me. I suggest checking the BBB about complaints. I’m exhausted over the stress this has caused and hope no one else has to deal with this. They are claiming I booked on 4/29 but I did not give them any down payment until 5/3 and canceled within the same day. I’m working with my bank now and I’ll send them all the proof I have but I guess it’s not guaranteed.
America’s prime is a nightmare don’t do it
Thanks for this article and it’s really helpful for me to know the specifics of deposits when it comes to moving, I especially noted that down payment would be higher when scheduling a move on weekends or on the summer. I was really planning to move next summer because I can’t stand my landlord anymore. But I think I should reschedule so that I don’t need to spend much more than my budget intended.
Thanks for this article and it’s really helpful for me to know the specifics of deposits when it comes to moving, I especially noted that down payment would be higher when scheduling a move on weekends or on the summer. I was really planning to move next summer because I can’t stand my landlord anymore. But, I will just move in the off-seasons so that I don’t need to spend much more than my budget intended.
Do NOT use American Moving and Freight
Brokers out of Coral Springs FL
US DOT 3742212. MC 1325142
What a scam
Do not use Mayflower Relocation services and the customer sales rep Ashley Brown. They will scam you. Most of us who are needing to move are under emotional stress and often times this has to do with maybe a divorce or a deceased loved one or a loss of job or whatever the case may be and there’s a lot of emotion and stress occurring in one’s life. Things change and I canceled within the three days I was allowed and they are still withholding my money. Because customer sales rep said that she would see me through the whole process when things started to feel very uncomfortable and my situation had changed and the sales rep did not return my phone calls or text messages on day 6 I reached out via email to the company no one returned my calls they only emailed me and they have not responded since then but they have refused to give me my money and said that it is on file I can use it for up to 2 years. I’m not moving I’ve already handled my relocation situation so they’re sitting with $1,200 of mine and will not return it and they’ve done nothing to earn a dime of it but talk on the phone with me. They charged over 50% of the job and a $1,200 payment and will not return any of the money. I do not understand how a company can operate this way there has to be more laws and more protection against scams and crooked companies. Mayflower relocation services is not a reputable company and I wish I would have noticed on better Business bureau that they scored an F rating. Again because this is an emotional time in my life and my father passed away I was not thinking clearly and they are thieves.
i have been trying for two months to get my deposit from new way moving services in miami florida with no sucess. what can i do before time runs out.
I USED MAUCHO MOVERS AND THE MOVERS DID A FANTASTIC JOB EVEN THOUGH THEY WERE 6 HOURS LATE TO THE MOVE DESTINATION.UPON COMPLETING THE MOVE THE DRIVER ASKED FOR PAYMENT IN FULL AT 1630 HOURS AND SAID HE COULD NOT LEAVE THE SITE WITHOUT FULL PAYMENT. THE SMALL TOWN WHERE I MOVED TO ,THE BANK WAS CLOSED. I ASKED IF HE HAD A DEBIT MACHINE AS I COULD HAVE PAID FOR IT INSTANTLY ON MY CREDIT LINE CREDIT CARD,HE REPLIED NO. HE SAID I SHOULD HAVE HAD A CERTIFIED CHECK OR BANK DRAFT READY.BUT HOW COULD I POSSIBALLY HAVE HAD A CERTIFIED CHECK READY IF I DIDNT KNOW THE TOTAL COST UNTIL THEY WERE DONE. I TOLD HIM I HAD A DEPOSIT AND THEY HAD MY ADDRESS SO THEY WOULD HAVE TO SEND ME A BILL AND USUALLY THE COSTOMER HAS 30 DAYS TO PAY BUT THAT WAS NOT GOOD ENOUGH.WHAT A FLY BY NIGHT BUSINESS THIS IS AS ALL THEY HAD SENT ME WAS A ESTIMATE OF THE MOVE ABOUT 6 WEEKS BEFORE THE MOVE.THEY NEVER HAD ME SIGN ANYTHING OR ASKED ME TOO.THEY ALSO CHARGED ME 7.5 HOURS EXTRA WHICH IS OVEWR 1000 DOLLARS ANDS COULD NOT TELL ME WHY. THE MOVERS HAD TO STAY AN EXTRA NIGHT IN THE MOTEL FOR PAYMENT THE NEXT DAY AND LET THEM TRY AND BILL ME FOR THAT!!!
I am trying to find out if there is law or regulation on maximum deposit for moving service. Can anyone point to the relevant law or regulation? Or is it just custom? Want to receive the information / answer at [email protected].
American Heritage Moving Solutions had me give deposit of $1127.60 and gave me 2 pickup dates. I continually called and spoke with staff and never was given a confirmed pickup date. Three weeks and they never provided the service promised. I got nothing but the run around with this moving company. I was lied to and scammed out of my hard-earned money. I’ve contacted Better Business Bureau and going to submit legal paperwork to small claims court. Do you have any other advice?
I got swindled on my 2,580$ deposit to Allstates moving and storage
i have been trying for two months to get my deposit from the moving services with no sucess. They will scam you out of your money too.I’m exhausted over the stress this has caused and hope no one else has to deal with this. I told my attoney about this and explained with proof he told me to complain to affliz@tutanota , com .. They were so helpful ..
I hired cross country moving company. They quoted me about 8,600 for a few rooms of furniture and 60 box’s. They required a pretty large deposit of $2,667.00. I had to split the deposit by two credit cards. The contract and decision was on 1/14/23.
But on 1/8/23 my family member called and said they wanted to come home after my husband passing and my mother 18 days apart last year and I am disabled since 2000. So I have a lot of issues going on and what happened to me with this company stiffing me out of the 1,267.00 because I was a few hours after their cancellation policy of 72 HOURS!!!!! I’m disabled and live check to check and the said sorry the best we can do is refund you 1/2 of the deposit.
Do not use this company they take advantage of you and lord knows if my processions would have been held hostage
Beware of Blockchain Movers. They took a deposit from me of $1469.96. Now they will not return my calls, emails or anything.
I called for the past 5 days from 3 different phone numbers. No response. I am now trying to get my deposit back by reporting them to anyone I can.
If you paid with a credit card dispute the charge. What I thought was a moving company was actually a broker. He promised my deposit was fully refundable. I contacted him because our house fell through he said no problem just leave the deposit and that will keep the rate for a year. We finally decided our move was not going to happen. I tried calling him again just to get my deposit back. He would not respond. The billing department said you went pass your pick up date. All my emails from them with attachments were gone from my saved file. No one contacted me from any moving company. It’s like they waited for enough time to go by so I missed my widow for getting my $2800 deposit back. They stole my money without providing a service!
Do NOT book Allied Movers & Storage LLC. out of Ft. Lauderdale!! Complete scammers. Trying to get our 2791.00 deposit back has been impossible. Put 1/3 down to be able to hold move price for three yrs. Please check out your moving Co. Throughly PRIOR to signing anything or giving a deposit. I wish I would’ve. Buyer BEWARE!
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