A moving company whose headquarter is in Paterson and another moving company whose headquarter is in Lodi were fined $21.2 million in civil penalties by New Jersey Attorney General’s Office; fines both companies could not pay resulting in the cessation of operations for the companies.
Progressive Movers Inc, the Paterson based moving company, scammed a large number of its customers by luring them in with a cheap price and then jacking up prices. When a customer contacted the firm for a moving quote the firm informed the the price would be cheap and provided a low price, however afterwards the company held the customer’s furniture and moveables hostage, and only released them after the customers paid a higher rate than that which was initially quoted.
“These defendants enticed consumers with low-cost moves that they had no intention of honoring. Bait-and-switch pricing, demands for higher payments and forcing consumers to pay significantly higher prices by withholding their possessions were all part of their ordinary business practices,” said Attorney General Jeffrey Chiesa.
Konstantin Egorov, the owner of Progressive Movers, was also fined.
After receiving complaints from consumers the State Division of Consumer Affairs investigated both companies which culminated in the shutdown announced today.