AG Frosh: Moving co. ordered to pay $549,226 for cheating consumers

An announcement from Attorney General Frosh’s office stated that his Consumer Protection Division issued a Final Order finding that Best Offer Moving Company, LLC and the two who ran it, Andrii Dziapka and Karina Sokol, repeatedly violated the Consumer Protection Act and the Maryland Household Goods Movers Act, and requiring them to return money to consumers and pay penalties and costs amounting to $549,226.45.

Best Offer was found to have violated Maryland law on all of its 391 Maryland moves that were performed since it began operating in 2014.

According to the announcement, on any move that takes place within Maryland, movers cannot charge consumers more than 125% of their estimate, and under no circumstances can a mover refuse to deliver a consumer’s goods once they’ve been loaded onto the truck. The Final Order found that Best Offer systematically charged consumers more than is allowed by law and, on some occasions, held consumers’ goods hostage to ensure payment of their inflated prices.

AG Frosh noted that customers should, “Beware of movers who give you estimates without seeing your goods or taking a complete inventory. Movers who move goods within Maryland are required to give you a written estimate, and the maximum amount you can be asked to pay is 125% of that estimate, regardless of how much time they spend on the move.  No matter what, once a mover has loaded your goods onto the truck, they must deliver your goods to your new home.”

The investigation found that Best Offer gave consumers small estimates to move their household goods, and then illegally raised the amounts it charged consumers. Its estimates were apparently given over the phone without anyone from the company viewing the goods to be moved or asking detailed questions about them. According to the findings, Best Offer never intended to honor the low estimates, and only used them to trick consumers into using its services.

The report continues to explain that on the day of the move, the company required consumers to sign blank forms at the beginning of their move that Best Offer later filled in with hidden charges for unwanted packing materials and services, substantial additional hourly charges, fees for paying with a credit card, and fees for moving items Best Offer decided were too “bulky.” After loading goods onto the truck, Best Offer would then charge customers much more than the estimates that were originally given.

If people then could not or would not pay, Best Offer allegedly would refuse to deliver their goods and demanded even more money for storage and redelivery. In one case, the company even was reported to have driven off with the prescription drugs and medical devices of a child with cerebral palsy, hearing loss, and other serious health conditions. The company then refused to return those goods until the Consumer Protection Division obtained a court order requiring them to do so.

Andrii Dziapka and Karina Sokol, of Germantown, are reported to have run the company together since May of 2014, and were each found personally liable for their roles in violating the Consumer Protection Act and the Maryland Household Goods Movers Act. The Final Order requires Best Offer, Mr. Dziapka, and Ms. Sokol to return all amounts they collected from consumers in excess of their written estimate or for storage fees at their unlicensed warehouse, which totals at least $117,284.68. The Final Order also requires the respondents to pay a civil penalty of $391,000 for their violations of the law, $39,468.58 in costs, and $1,473.19 for additional economic damages suffered by consumers. In total, the Final Order requires Best Offer, Mr. Dziapka, and Ms. Sokol to pay at least $549,226.45.

The Final Order also imposes significant restrictions on Best Offer and on any company over which Ms. Sokol or Mr. Dziapka has control or ownership in order to protect customers. Before they can conduct any more business, they have to post a $75,000 bond for the benefit of consumers. The order goes on to say that they also must conduct in-home surveys of consumers’ household goods before providing estimates, and must base their estimates on those surveys, are prohibited from charging a consumer any amount for services or fees that are not expressly listed in the written estimate, and are barred from asking a consumer to sign any document with a blank price term. To avoid last minute surprises, they may not change or amend their written estimates within seven days of a move, and there are further significant restrictions in place to ensure that they offer accurate estimates, that they do not collect hefty upfront payments, that they follow through on their providing the promised services, that they deliver all of a consumer’s goods, and that they do not overcharge consumers.    

Attorney General Frosh urges consumers to know their rights, and provided the following tips for consumers moving from one Maryland address to another:

• Your mover must provide you with a written estimate.
• Your estimate must state whether it is binding or non-binding.
• If you receive a binding estimate, the mover cannot charge you a penny more.
• If you receive a non-binding estimate, the mover cannot make you pay more than 125% of that estimate.
  • This includes the cost of packing materials, and all fees and costs associated with your move.  
  • For example, if your non-binding estimate is $400, you cannot be asked to pay more than $500 ($400 x 125% = $500).
  • Even if it takes hours longer than expected, or if the mover uses many more boxes than expected, your bill is capped at 125% of your estimate.
• Once your mover puts your goods on their truck they must deliver them to you, even if there is a payment dispute.