A New York shipping broker will have to pay over $21,000 for violations of Kansas consumer protection laws.
The Sedgwick County District Attorney’s Office received a complaint about JK Auto Shipping. A consumer contracted with the firm to transport her daughter’s car from Florida to Kansas s for a total price of $790.00, paying a $200.00 deposit. On the day of the scheduled transport, JK Auto Shipping told the consumer that a total of $1,000.00 would be needed to deliver the car to Kansas. The consumer reluctantly complied, spending a total of $1,200.00, a 52% price increase from the quoted price.
The agent for JK Auto Shipping told the district attorney’s office that he had shut down the company, and on May 6, 2024, the Federal Motor Carrier Safety Administration revoked JK Auto Shipping’s required registration. An investigation by the Consumer Protection Division of the district attorney’s office then found that the agent had registered a new auto shipping brokerage corporation using the same address as JK Auto Shipping.
Under the ruling in Sedgwick County district court, JK Auto Shipping was ordered to pay $410.00 in restitution to the consumer and $20,000.00 in civil penalties, along with court costs and investigation fees. The court also ordered JK Auto Shipping to stop engaging in consumer transactions in Kansas until all restitution, costs and fees are paid.
The DA’s Office is reminding consumers that they should exercise care when selecting suppliers of services, 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. If deposits or fees are paid via credit card and an issue arises, the consumer can dispute the charge with the credit card provider if the supplier fails to deliver the services at the quoted price. In this case, JK Auto Shipping refused to accept credit card payments, a red flag to exercise caution.
In addition, the Federal Motor Carrier Safety Administration (FMSCA) advises consumers that when arranging to transport a car:
- 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 where it is not clear whether the company is a broker or a transporter. - 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://lipublic.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. - If you make payments by credit or debit card, closely monitor the transactions with
that company. Be sure that the money you authorized to transfer is all that is taken from
your account.
