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Story on unlicensed moving companies in Illinois. The ostensible "news" story about unlicensed movers in the State of Illinois is heavily slanted in favor of the state's existing compulsory licensing structure and never considers any alternatives to the current system, such as voluntary certification.
Things have been difficult for the moving industry lately, particularly with the collapse of the housing bubble--and the economy in general. This has led penny-pinching consumers to look to cheaper options, and has encouraged some people who have been laid off or are otherwise looking for some supplementary income to enter the business without getting a license. The number of licensed residential movers in the state is down to about 300 from nearly 500 in 2001, and licensed movers are complaining about competition from unlicensed movers.
The article cites a licensed moving company sales manager who claims that consumers that utilize the services of unlicensed movers have little or no recourse if there are billing disputes or damaged or missing items. As David notes in his own blog post on the topic, this ignores the fact that a business's reputation and the legal system serve as checks on negligent or criminal behavior on the part of movers. Simply put, businesses don't become successful by treating their customers poorly. Consumers can additionally minimize risk by doing some homework on businesses by asking for references and proof of insurance or looking for other consumers' reviews of businesses. Even with the current licensing system, the article cited the Web sites movingscam.com and Craigslist as places people can go to see negative reviews of moving companies. If the state licensing body did not exist, there would likely be even more such resources, but its presence may lull consumers into a false sense of security about the companies they do business with simply because they are "licensed." Furthermore, if problems do arise that cannot be resolved by the customer and business (or a third party such as the Better Business Bureau or, in the absence of a state licensing board, a voluntary certification organization), the legal system is available to settle disputes.
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