Executive Summary
The portable storage industry faces widespread consumer protection failures, with PODS, 1-800-PACK-RAT, and Zippy Shell collectively generating thousands of complaints about hidden fees, deceptive billing practices, and service failures between 2019-2024.
Most significantly, 1-800-PACK-RAT and Zippy Shell merged in 2018 under Virgo Investment Group ownership, creating shared liability exposure that culminated in a $1.6 million class action settlement in 2024.
Company Profiles & Ownership
PODS
- CEO: Kathryn Marinello (2021)
- Owner: Ontario Teachers' Pension Plan
- Acquisition: $1 billion (2015)
- BBB Rating: A+ Accredited
- Operations: 240+ centers, 46 states
1-800-PACK-RAT
- CEO: Mark Kuhns
- Owner: Carlyle Group (2024)
- Settlement: $1.6M class action
- BBB Rating: A+ Accredited
- Merger: With Zippy Shell (2018)
Zippy Shell
- CEO: Mark Kuhns (shared)
- President: Gareth Taylor
- Owner: Carlyle Group (2024)
- BBB: Zero accreditations
- Growth: 80% (3-year)
Systematic Violations & Deceptive Practices
Systematic Billing Deception
- Hidden fees: $144 to $1,100+ per incident
- Total losses: Up to $10,000+ including damages
- Cancellation trap: $299 fee within hours of booking
- Storage overcharges: 33 months for undelivered service
"Charged $2,994 for cancelled services after company's delivery failures"
"Final costs increased from $9,000 to $12,500 through hidden charges"
Insurance Claim Denial Patterns
- Coordinated denial practices across companies
- "Acts of God" cited for rodent infestations
- Mandatory coverage sold, claims systematically denied
- Blame shifting to customer packing methods
Operational Failures
- Customer service wait times exceeding 1 hour
- Container location misrepresentation
- Delivery failures forcing emergency alternatives
- Billing during company-caused delays
Legal Actions & Settlements
2024: McKeehan v. 1-800-PACK-RAT Class Action
Settlement: $1.6 million
Violation: Illegally recording California customer calls without consent
Period: September 2021 - October 2022
Payout: Up to $600 per affected customer
2022: Weinstein v. Zippy Shell
Case: 6:22-cv-00042 (M.D. Florida)
Status: Ongoing federal litigation
PODS Franchise Litigation
Issue: 46 franchisees demanded share of $41.4M U-Haul settlement
Result: PODS refused, claiming sole ownership
Industry Data & Analytics
Financial Indicators
- PODS: $1B acquisition by Ontario Teachers'
- Pack-Rat/Zippy: $525M refinancing (2024)
- Carlyle investment: $180M preferred equity
- JPMorgan debt: $345M facilities
Regulatory Compliance
- PODS: A+ BBB accredited
- 1-800-PACK-RAT: A+ BBB accredited
- Zippy Shell: ZERO BBB accreditations
- FMCSA registered (all companies)
Were You Affected?
If you've experienced hidden fees, billing fraud, or service failures with these companies, you may be entitled to compensation.