Expert: Chris Ebert - 8/16/2009

Question
We hired a New York  moving broker who had our household goods moved to California (we are CA residents).  We paid a deposit  and the agreement was that we'd pay for additional weight after the final weigh in.  They sent an email stating that we owe $600 more but no invoice.  I asked for invoice along with tariffs for verification of additional amount.  They sent an invoice but no tariffs.  I talked to FMSCA who informed me that by federal law, they must be registered with them (which they are not) and they must have their tariffs registered with them and provide to costumers upon request.  Moving company will not send me their tariffs and sent me to a collection agency.

The collection agency is a FL based company.  They have violated several of the laws that outlines what collection agencies are allowed to do, etc.  

If we sue the collection agency, do we sue in CA or FL, and in what court?  Or, do we sue the creditor, who is based in NY?  Also, I don't think this debt is valid since creditor, the moving company, has never complied with federal regulations and will not send us their tariffs to validate their invoice.

Any advice would be appreciated.  Thank you.

Answer
Fanny,

In general, you can sue the collection company in a local small claims court. They may try to make the argument (if they show up or hire an attorney) that the proper venue is Federal court. Fi they are successful then this kind of case can get rather expensive. Most likely much more than the $600 at question plus any violations of FDCPA. Plus these may need to be separate lawsuits.

I know that it is hard to hear but when a small amount of money is involved (say under $1000) it is usually not worth it to sue. You have to be pretty mad and have plenty of disposable income to prove you are right. Most people in this situation decide to settle with the collection agency for as little as they can. Be sure to demand removal in writing of the item from your credit report.

As far as the company not being registered, then you can make the complaints to the NY attorney general office and FMSCA. I am not sure that because they are not registered that negates the contract you signed with them.