The Consumer Council today (September 19) named two local removal companies for trade malpractices against consumers.
The two were the subject of a total of 26 complaints involving delivery and insurance premium charges valued at some $330,000.
To alert the consuming public to their malpractices, the Council has decided to publicly name the two removal firms identified as:
(1) East Asia Movers
1003, Ground Floor
Sheung Shui Centre
Sheung Shui, New Territories
(2) East Asia Worldwide Limited
Flat 3, 3/F, Festigood Centre
8 Lok Yip Road
Fanling, New Territories
Since September 1999, the Council has received 16 and 10 complaints against East Asia Movers and East Asia Worldwide Limited respectively.
A company search of the 2 movers concerned has revealed that the operator of East Asia Movers which has its business registration dated in December 1998, was previously also a director of East Asia Worldwide Limited.
Both movers advertised to provide "door-to-door" removal services both locally and to overseas countries.
Among the complainants were former Hong Kong residents who have entrusted their personal and household belongings to the movers to ship back to their home countries.
Their cargoes ended up either never arrived, stranded, damaged or simply lost.
Consumer complaints on overseas removal services have risen considerably in recent months. There were 24 cases in the first 8 months of this year compared with 12 in 1997, 16 in 1998 and 6 in 1999. On local removal services, the numbers have remained relatively stable: 33 in 1997, 32 in 1998, 36 in 1999 and 21 in the first 8 months of 2000.
Despite mediation - and warning letters - of the Consumer Council, the two companies have not taken any positive action to rectify the situation or have they proposed any offer to settle the complaints.
In consequence, the Council has referred some of the complaints to the police for investigation of any possible criminal element involved. It has also advised some of the complainants to seek legal redress as their claims for compensation were consistently ignored by the companies.
Complaints against the two movers which were, in many ways, similar in their trade practices fell mainly into two categories:
Late or Non-Delivery
One reason given for the late or non-delivery was alleged to be the failure of the companies to pay their overseas shipping companies or counterpart removal companies. This resulted in the cargoes being impounded in the warehouse of the destination countries.
In one case, a motor car was impounded and left stranded in a warehouse in the UK for over 8 months allegedly due to a financial dispute between the East Asia Worldwide Ltd. and its shipping company there.
Another major reason given was the policy of the companies not to ship any cargo before a container was fully filled. The companies would nevertheless promise orally a shipping date that was invariably much earlier but could never be honoured.
In one case, the complainant engaged the East Asia Movers to ship his household goods to his home in Spain. Six months later, he discovered that his belongings were still sitting in a warehouse in Hong Kong with no indication if and when they would be shipped out at all.
Loss or Damage
Complaints were raised against the companies for allegedly failing to handle the goods with due care, and resulting in the loss or damage of goods.
In one case, 24 boxes of household goods were reported missing in a storage and shipment service of 54 boxes but East Asia Movers refused to pay any compensation to the complainant.
In another, an antique Buddha statue was badly damaged and broken into pieces during the shipment. Again East Asia Movers refused to compensate.
And, some of the complainants against East Asia Movers had no knowledge about the name of the insurer with which the mover had allegedly taken out the insurance policy on behalf of them. When they sought to obtain the claim forms or to find out the name of the insurer, the mover was unable to provide either.
In engaging the service of a removal firm, consumers are advised to heed the following:
- Determine beforehand the number of items to be moved.
- Seek quotation from at least several removal companies.
- Besides price, ask around friends or relatives who may have used the service of the movers about their reliability and quality of service.
- When the choice is made, arrange and confirm in writing with the mover for the date and time of packing and removal.
- Properly pack all items and clearly label the contents of each box. If a box contains fragile items that break easily, it should be stated prominently to draw the attention of the mover.
- Do not pay the full price in advance. It is advisable to pay a deposit first and the full amount only on completion of the task. Secure receipts for all payments. If insurance premium is paid, ask for the receipt as well as the policy.
- Find out relevant details of the insurance policy from the removal company, such as whether the insurance covers the items concerned, improper handling or theft, etc.
- On the day of the removal, as far as possible have someone who knows the details of the contract with the mover and of the items to be moved to be present and handy to answer queries and offer guidance to the removal staff.
- Once the items reach their destination, conduct an immediate count and inspection. If any item is found missing or damaged, report and claim for compensation immediately. Do not procrastinate.
Under the Supply of Services (Implied Terms) Ordinance, where time to perform the service is not fixed by the contract or left to be fixed in a manner agreed by the contract, there is an implied term that supplier of the service will carry out the service within a reasonable time.
Moreover, there is an implied term that the supplier of the service will carry out the service with reasonable care and skill.
Consumers are entitled to legal remedies, such as damages, upon breach of these terms.