hotel rewards computer glitch
July 24th, 2015 at 1:14:29 PM
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Choice Hotels, (the parent company of Comfort Inn, Quality Inn, Clarion, Econolodge, Rodeway Inn and other brands) is suing Florida resident Robert Chat. Chat is a member of the chain's loyalty club (Choice Privileges) and last October he discovered that even after he cancelled an existing reservation, the hotel's website never confiscated the Choice Privileges bonus points he would have earned for the stay. So Chat then proceeded to reserve and cancel hundreds of reservations and by January had racked up enough points to convert into $48,500 worth of gift cards to Home Depot, Target, Dunkin Donuts, (huh?) and Applebees.
Chat points out that he never hacked into their computers, and therefore did nothing wrong. "I'm not even computer literate. If I obtained more rewards than allowed, it's on their end, not mine," he said. An attorney for Choice Hotels sent a March 12 letter to Chat demanding he pay triple damages to the company within 30 days, which the lawyer said is allowed under Florida law for cases involving civil theft. Choice Hotels said that meant Chat owes it $145,500. The chain has declined to say whether they are confiscating points earned by other guests who cancelled reservations.
Loyalty point mistakes are rare, but not unheard of. In 1999, a California man purchased $3,000 worth of pudding to accumulate 1.2 million American Airlines frequent flier miles.
Did Chat commit fraud? Should the hotelier let him keep the Choice Privileges points? If not, should they sue for $48,500 or $145,500?
Chat points out that he never hacked into their computers, and therefore did nothing wrong. "I'm not even computer literate. If I obtained more rewards than allowed, it's on their end, not mine," he said. An attorney for Choice Hotels sent a March 12 letter to Chat demanding he pay triple damages to the company within 30 days, which the lawyer said is allowed under Florida law for cases involving civil theft. Choice Hotels said that meant Chat owes it $145,500. The chain has declined to say whether they are confiscating points earned by other guests who cancelled reservations.
Loyalty point mistakes are rare, but not unheard of. In 1999, a California man purchased $3,000 worth of pudding to accumulate 1.2 million American Airlines frequent flier miles.
Did Chat commit fraud? Should the hotelier let him keep the Choice Privileges points? If not, should they sue for $48,500 or $145,500?
July 24th, 2015 at 1:37:54 PM
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I would say it depends on the fine print in the offer. As an example, i will be using an American Express Card offer to get $50 back when I book any plane fare via an airlines website. It specifically states I will have to pay it back if I cancel my flight. If the hotels never issued the FORTY EIGHT THOUSAND dollars in gift cards I see no chance that Chat would be able to sue to get them, but once THEY sent them to him I would bet against the company winning this suit, barring something specific in the written offer.
July 24th, 2015 at 1:43:42 PM
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Considering the abuse of it, seeking repayment isn't unreasonable. But "treble damages" because it was your fault??? C'mon. G/f and I earned enough points each for $50 gift cards this summer (or 1 free night each) by staying 4 nights total. This place runs promos like this all the time.
Edit: more info https://www.choicehotels.com/choice-privileges/rules-regulations#general
16. Choice and its partners at their discretion can terminate your membership and/or cancel some or all of your Choice Privileges points, Airline miles, Amtrak Guest Rewards points or other rewards accrued or issued at any time and may take appropriate administrative and legal action if you abuse, violate or defraud the Program, Membership Guide, Membership Brochure, reservations or Hotel Benefits, points or reward redemption, or any federal, state or local law.
18. The Program will be governed by Maryland law, without regard to Maryland conflicts of laws principles.The Program will be governed by Maryland law, without regard to Maryland conflicts of laws principles.
Edit: more info https://www.choicehotels.com/choice-privileges/rules-regulations#general
16. Choice and its partners at their discretion can terminate your membership and/or cancel some or all of your Choice Privileges points, Airline miles, Amtrak Guest Rewards points or other rewards accrued or issued at any time and may take appropriate administrative and legal action if you abuse, violate or defraud the Program, Membership Guide, Membership Brochure, reservations or Hotel Benefits, points or reward redemption, or any federal, state or local law.
18. The Program will be governed by Maryland law, without regard to Maryland conflicts of laws principles.The Program will be governed by Maryland law, without regard to Maryland conflicts of laws principles.
