posted: Apr. 16, 2007 @ 4:27p
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
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.
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.