Starving Students moving firm sees a big bite taken from it

Starving Students Inc., a moving company headquartered in Los Angeles, now has the distinction of having been penalized with the largest fine ever assessed against a mover in this state.

Earlier this month, the Washington State Utilities and Transportation Commission (WUTC) fined the moving company $75,000 for more than 600 consumer-protection and safety violations. The commission also ordered compliance actions.

The regulatory agency has suspended $25,000 of the fine, unless there are further violations. Starving Students will pay $59,225 - $50,000 for this recent case, plus $9,225 that was suspended for earlier violations; $18,600 to reimburse the commission for costs of the investigation; and $3,680 in overdue regulatory fees. That totals $81,505.

Starving Students has accepted the commission's ruling and agreed to pay the fines, without appealing.

Andrew Butterbrodt, president and CEO of Starving Students, expressed disappointment over the case.

"But we realize we had issues and were not in compliance with WUTC rules. We take that seriously. We've put together an action plan to train our employees and are very concerned about following the rules," Butterbrodt said.

Butterbrodt also said his company handles thousands of moves and has many satisfied customers.

"We do pride ourselves on good moves. I think these (the violations) are resolvable issues," Butterbrodt said.

One of the more interesting exchanges between the WUTC and Starving Students took place when the commission issued the fines.

Marilyn Showalter, WUTC chairman, and Dick Hemstad, another commissioner, both attorneys, questioned Butterbrodt about the company's name and its employees.

Hemstad said he found the name "misleading," because it is not a business operated by "starving students."

Asked about that, Butterbrodt told me the name has been challenged, but he said the company is using the name legally.

"We do say we hire people other than students and do not discriminate," Butterbrodt said.

He cited a number of companies, such as Ben & Jerry's Homemade Ice Cream, whose names do not necessarily depict the size or character of their employees. Ben & Jerry's was acquired by Unilever earlier this year.

Butterbrodt believes his company name is a "non-issue."

Last year Starving Students moved 3,855 Washington state households and grossed $1.7 million, according to WUTC records. Nationally, Starving Students operates in 13 states and performs approximately 50,000 moves annually.

Over the next year, the commission will perform two audits of Starving Students to learn whether the company is fixing its problems.

The violations were found in a 1999 investigation of the company by the WUTC staff. A follow-up survey of more than 300 Washington consumers identified further problems.

According to the state investigation, Starving Students:

-- Gave consumers verbal estimates for moving costs, not written estimates as required by law.

-- Failed to offer to sell insurance or what the moving industry calls "valuation coverage" for loss or damage.

-- Employed untrained staff.

-- Neglected delivery commitments.

-- Discouraged damage claims.

In addition to assessing fines, the commission has ordered Starving Students to:

-- Train its employees and managers.

-- Reprogram its computer system to avoid overbooking trucks and employees.

-- Institute a comprehensive safety program.

For six months, Starving Students also is prohibited from expanding beyond its present four locations in Seattle, Bellevue, Kent and Spokane.

The moving company was the subject of 17 consumers' complaints to the commission in the past two years.

"That's off the charts," said Tim Sweeney, a WUTC spokesman. Most moving companies are the subject of one or two complaints a year.

Last spring, Troubleshooter researcher Cheryl Morningstar and I detailed the moves of three consumers and also how to move pets. The original columns and follow-ups can be found at the Web site www.SeattleTimes.com with my byline.

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Shelby Gilje's Troubleshooter column appears Wednesday and Sunday in the Scene section of The Times. Got a consumer problem? Write to Times Troubleshooter, P.O. Box 70, Seattle, WA 98111. Phone, 206-464-2262, fax 206-382-8873, or e-mail address, troubleshooter@seattletimes.com.