Fed Ex Ground CLAIMS WARNING FedEx Shipping

Archived From: Deal Discussion
  • Page :
  • 1
  • Text Only
rated:
Most bizarre rip-off I encountered in a long time. I am a heavy FedEx Ground user. After reading this you probably will think twice.

Yes, most of us use Ground because it has been cheaper. The point of the email is to make you think twice before you ship. Bottomline, make sure you understand the Ground Tariff.

Yes, I shipped numerous high ticket items with FedEx and had good success with them, just be extremely careful. There claim policy is 100% ad hoc and spotty. Do a google search on sue fedex and you will see interesting stories ripe with fraud on behalf of FedEx. It is very common for them to pay $100 and decline the rest of your declared value.

I filed a claim for a damaged in transit item.

It is virtually impossible to ever get FedEx to honor a claim. They will make up ad hoc rules as they go along.

DENIED BECAUSE AN END OF DAY BUSINESS REPORT WAS NOT PRINTED. CLAIMS COULD NOT DETERMINE IF I BOUGHT INSURANCE/DECLARED VALUE. ON MY SIDE IT SHOW. I know we have alot of success/failure stories with carriers. The main point of this notice is that we all understand the inherent risks of shipping with a carrier. In this case it is FedEx Ground. The agents I encountered do NOT know policies, nor do they have ethics. I have been lied to over and over. As soon as documentation is provided that is in question, they move on to the next "requirement" that is unfulfilled. It never ends, and their systems are not in sync.

I've been a user FedEx Ground user for approximately 5 years, so the first guess is that they must be doing something right. FedEx Ground only excels in cheap transportation cost. My annual bill with them is around $10,000 a year. That is about 800 shipments annually, or about 60 a month. After excessive rip-off by them, I switched to UPS.



They are NOT recommended for someone that ships 10 items or less on an annual basis. Justification, when a problem arises, they can not and will not help. This can be detrimental for someone shipping a rare or expensive item. I've seen testimony from normal, everyday consumers that lost significant money when an item was lost or damaged. Because of the volume that I ship, I can afford to accept losses as a cost of doing business, but I fight every claim. I am fighting the good folks at FedEx Ground right now on a 3 week old problem.



Allow me to give specific examples of the explicit risk you take when shipping with FedEx Ground.



I inherently believe that each field department is well versed in attempting to deny a claim for any reason. The steps are as follows:



1) Claim denied for lack of supporting documentation. This is why you make multiple copies including screen shots and jpeg images of store receipts and credit card receipts. It will usually take 3 to 4 emails or faxes to the same person to show the value of the goods. Time wasted on this effort can be around 2 hours.



2) Once documentation is received, it has taken 6 to 8 weeks for review. During this time, any phone call or email that you make is futile. There is absolutely no correspondence or communication from FedEx during this exercise. Time wasted varies.



3) Finally, you will receive an email or letter stating the status of your claim. It is quite possible that you may get paid, but wait! Your claim may only be paid partially. This is the latest scheme by FedEx. It is very interesting and creative. READ THIS VERY CAREFULLY AND URGE YOUR ATTORNEY GENERAL OR YOUR LAWYER TO TAKE ACTION ON THIS POINT IF IT HAS HAPPENED TO YOU. When you enter the data to make a shipping label, there is a box to declare the value. In my case, I entered $299.00 as the value of the item. When my case was paid, I only received exactly 1/3 of my declared value. Very interesting! So, I picked up the phone to begin my rules of evidence. Read this part twice! The claims agent stated that A)my item had declared value of $299 yet B) the internal FedEx billing/revenue department "never billed me" according to the last agent I talked with.


My theory is that the FedEx managers hold weekly meetings to show profit/loss to the claims representatives. Draw your own conclusions.

I speak 100% factually based on experience. In 100% of the cases where I dealt with representatives in the claims area, their script was very poor, however, ad hoc policy was permitted. By that I am referring to inconsistent, undocumented policy that spews from the lips of agents
*******************

UPDATE 4/19/07

Thanks for all the good comments. It is 100% evident that the employees have ad hoc policies based on what they think or feel. One agent put me in touch with my "sales rep" in Arizona. Supposedly, he could log into my account and see my declared value. It is obvious he sits in an office all day, has zero grasp on small business American, and resolving matters.

I have switched to UPS.

******************
Update 4/24/07
Today, I decided to file suit against FedEx Ground. Roughly they denied about $175.00 of my claim. I decided to pursue this case because of principle.

Member Summary
Most Recent Posts
The two times that I have submitted a claim with UPS for items valued about $100, they asked a few questions and then a ... (more)

Amhenn (Apr. 20, 2007 @ 4:48p) |

For what its worth, from a former employee at UPS. It probably comes from package jams on the belts. See there are mil... (more)

efficacyman (May. 14, 2007 @ 7:46a) |

Ahhh, that's why a lot of those UPS packages are always partially smashed in...
I haven't dealt with UPS claims, but the ... (more)

Trikat (May. 14, 2007 @ 11:56a) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
Thanks for visiting FatWallet.com. Join for free to remove this ad.

wow...that really sucks

I completely agree with you. A few years ago, I was doing a reasonable volume on eBay and used FedEx ground because they were cheaper than UPS but after having an issue with them I stopped immediately. I got more runaround from them than I had gotten from any other company. It wasn't worth my cost savings so I went back to UPS since I hadn't had any problems with them.

I actually had a great experience with FedEx Ground insurance.

I shipped an item with them about three months back and they delivered it to the customer but the customer never received it. I did not specifically require a signature required and the driver apparently left it at the business but the customer never found it. I filed an insurance claim and sent them the print out of my eBay auction. FedEx sent me a check for the full amount including shipping about 6 weeks later.

i have no any experience dealing with the carriers. But my two lost packages from HP and Buy.com were handled very well. Probably it will be a lot easier for the big guys to deal with the carriers under contracts.

DHL or airborne express or whatever they call themselves now is 10x worse.

i have to make a claim under fed ex ground twice, both times paid. both of these events were a few years ago however.

you do have to print that end of day close thing, though. i always keep it.

I've been reluctant to use FedEx ground/home after a damage claim that they automatically rejected "just because". I had people quietly tell me that is how they handle claims - reject them when they are above a certain amount regardless of obvious damage on their part. The dollar amount seems to be the key.

All that savings over UPS just isn't worth it when just one big ticket item is a total loss. And honestly, when you have an account with UPS - they aren't much more than FedEx most of the time. There are blazing exceptions, but UPS generally pays better.

Now having said that, I'll give everybody a heads-up with UPS and claims. UPS has outsourced their claims at some point along the way. Until recently, I never had a problem with claim, but when I had a very, very well TRIPLE PACKED Epiphone SG400 guitar totally trashed - their insurance carrier, Crawford, automatically rejected it. Ultimately they did pay, but I had to jump through hoops to get a ~$300 refund back.

Still I think the worst is the USPS. They rarely break things when they are well packed, but they tend to loose items. Their claim process is a joke.

I don't know if this would help your situation, but I used to do large volumes with FedEx Ground everyday. When a claim would occur and was not being processed correctly or denied for some reason that didn't make any sense, I called my FedEx Sales Rep, where she took care of everything. Everyone has a sales rep, FedEx just doesn't like to disclose their names to the territory you are in. I think the way I found mine, was just dialing 1-800-GO-FEDEX, and talking to the operator and asking to have my sales rep call me (they aren't allowed to give you the name of the sales rep or their number).

Ever since I got her information after she called me, my life was 10x easier dealing with FedEx.

Fedex truck burnt down along with my laptop I sold. I got back every penny.

Buyer claimed he recieved damaged printer one day($300). Filed claimed and received every penny.

So far so good for me.

all my claims have been taken care of. Then again I always talk with my rep to get things straightened out. I don't know what the secret cut off value is before they start acting funny, but the most I've filed for was $700 with no problems.

Fedex routes are franchises. The drivers are all independent contractors. They don't want to pay claims because a percentage of that is coming out of an individual's pocket, the owner of the route.

Yup. The same applies to UPS. If a UPS route driver looses a package due to, say, leaving it at the door - and it is stolen, it comes out of their pocket.

My father had a $1000 digital camera come back from a Sony service center that came up missing. Ouch!

My only claim with FedEx ground/home was a pair of Klipsch speakers - packed back in their original very substancial boxes - that I sold for $800 on FeeBay. The key selling feature was that they were in perfect condition - and at this level the finish was a real wood veneer. FedEx damaged both of them slightly, but enough that I would be unhappy too. That is the claim that was denied "just because that's how they do it".

Ultimaitely I refunded the buyer the $800 (I sold them with free shipping) and ate them. The only irony is that I touched them up, sold them for exactly what they were (one owner, minor shipping damage to the back of each speaker - with photos of the damage) and they sold for the same money again. I believe FedEx DID refund me the shipping charges as a legality to get them out of contract, and they returned them to me at no charge, but I was still out FeeBay fees.

I recommend you also post the story on Rip Off Report as well as Consumerist.

That will give some attention from FedEx. If not that, it'll warn future consumers like us to be wary of FedEx and hurt them in the pocket book where it matters.


*shorting FedEx stocks....* =)

I never had a problem with loss claims with them.

I don't know if this applies all over or not, but whenever I receive parcels via FedEx, they are in MUCH better condition than those received by UPS. The ones sent by UPS look like they were dropped from an airplane at 10,000 feet.

runningair said: I don't know if this applies all over or not, but whenever I receive parcels via FedEx, they are in MUCH better condition than those received by UPS. The ones sent by UPS look like they were dropped from an airplane at 10,000 feet.
Hence UPS's nickname - United Package Smashers.

United Package Smashers - that's good. LOL. But seriously, why does this happen? Careless employees, or are machines doing the damage?

For what it's worth, I do know that an awful lot of UPS Ground moves by train from Chicago to the west coast and vice versa. If the trailers aren't packed properly, I can understand how the damage is done.

I've had about 6 Amazon deliveries through UPS in the past couple of months. 4 of the 6 boxes have been smashed in. 2 of the 6 boxes were missing items. I don't know if it's UPS or Amazon with there's horrible shipping.

The thing with FED EX is that they come at weird times. I had one come at 6 pm one time to deliver the package.

As for problems with FedEx and reporting missing shipments. I've had no problems with them. They refunded the money back. Though wouldn't ship with FedEx anymore. Btw, it was overseas not domestic.

The two times that I have submitted a claim with UPS for items valued about $100, they asked a few questions and then a check arrived for the amount within 2 weeks. I am very pleased with UPS over FedEx.

runningair said: United Package Smashers - that's good. LOL. But seriously, why does this happen? Careless employees, or are machines doing the damage?

For what it's worth, I do know that an awful lot of UPS Ground moves by train from Chicago to the west coast and vice versa. If the trailers aren't packed properly, I can understand how the damage is done.


For what its worth, from a former employee at UPS. It probably comes from package jams on the belts. See there are miles and miles of belts inside a UPS hub that 120,000 packages travel on a night. And the belts are fast and the motors have a lot of torque to them. So when a package gets jammed in the belt somehwere they pile up and smash into each other = smashed packages. Either that or someone in the loading dock hates you and is purposely smashing your packages

efficacyman said: runningair said: United Package Smashers - that's good. LOL. But seriously, why does this happen? Careless employees, or are machines doing the damage?

For what it's worth, I do know that an awful lot of UPS Ground moves by train from Chicago to the west coast and vice versa. If the trailers aren't packed properly, I can understand how the damage is done.


For what its worth, from a former employee at UPS. It probably comes from package jams on the belts. See there are miles and miles of belts inside a UPS hub that 120,000 packages travel on a night. And the belts are fast and the motors have a lot of torque to them. So when a package gets jammed in the belt somehwere they pile up and smash into each other = smashed packages. Either that or someone in the loading dock hates you and is purposely smashing your packages


Ahhh, that's why a lot of those UPS packages are always partially smashed in...
I haven't dealt with UPS claims, but the FedEx claims I did was easy. They lost one of my larger packages and I recovered the montary amount with ease.
I still use FedEx as UPS frequently delivers dented and mashed packages compared to FedEx/DHL/USPS.
IMHO FedEx>DHL>UPS>USPS.
USPS international delivery is cheap, but 1 out of 5 shipments are always delayed. Recently I have had so many international shipments delayed way beyond the ETAs and the tracking information were poor. I hope the May 14 update will help out with deliveries and tracking.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014