Shipping broker ordered to pay back Wichita-area customer

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Shipping broker ordered to pay back Wichita-area customer

Shipping broker ordered to pay back Wichita-area customer

WICHITA, Kan. (KSNW) — A Sedgwick County woman who hired an out-of-state company to transport a car said she was overcharged. The district attorney’s office agreed, and the woman is getting her money back.

The woman needed to get her daughter’s car from Florida to Kansas. District Attorney Marc Bennett said she contracted with JK Auto Shipping, a New York shipping broker, to transport the car for $790, paying $200 as a deposit.

But on the day it was supposed to happen, the woman said JK Auto Shipping told her the transporter needed a total of $1,000 to deliver the car. The DA says the woman reluctantly complied, spending a total of $1,200, a 52% price increase from the quoted price.

Bennett says the company violated the Kansas Consumer Protection Act by price gouging and deceptive solicitation. In a default judgment, Judge Eric Commer ordered JK Auto Shipping to pay the woman $410. He also ordered the company to pay civil penalties, court costs, and investigative fees. In all, the company is paying out $21,607.

The DA’s office said Kamran Akhtar, the registered agent for JK Auto Shipping, informed the Consumer Protection Division that he shut down the company. However, the DA says the company’s website is still operational.

Also, the DA’s office says its Consumer Protection Division investigators found that in July, Akhtar registered a new auto shipping brokerage corporation, Black and White Dispatch Inc., with the New York Secretary of State. It has the same address as JK Auto Shipping.

Bennett said there was a red flag during the woman’s interaction with JK Auto Shipping — the company refused to accept credit card payments. If deposits or fees are paid by credit card and an issue arises, the customer can dispute the charge with the credit card provider if the supplier fails to deliver the services at the quoted price.

The DA also advises people to be careful when choosing service suppliers, especially when contracting with out-of-state business entities. When entering into a contract, a consumer should request a written copy signed by all parties.

In addition, the Federal Motor Carrier Safety Administration advises consumers that when arranging to transport a car:

  1. It is important to understand the difference between an auto transporter and an auto broker. Auto brokers only arrange the transportation of your car. Be suspicious of any website that does not clearly state whether the company is a broker or a transporter.
  2. Both auto transport brokers and carriers that operate interstate are required to be registered with FMCSA. Auto transporters and transport brokers are both issued a six-digit “MC Docket” number. Auto transporters are also issued a seven-digit “USDOT” number. You can check the validity of the registration of any transporter or broker by doing a “carrier search” for their MC Docket number at https://li-public.fmcsa.dot.gov/LIVIEW/pkg_carrquery.prc_carrlist. Avoid any auto transporter or broker that does not prominently display their MC Docket number on their website.
  3. If you make payments by credit or debit card, closely monitor the transactions with that company. Be sure that only the money you authorized is taken from your account.

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