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Getting stonewalled by your cruise line? Sue your bank

May 27, 2008

Here’s an odd case with a surprise ending that would probably make David Mamet proud. It’s about a refund gone awry and and unlikely solution that even this ombudsman wouldn’t have known to recommend.

Michael Sawyer is a National Guardsman who booked a hard-earned cruise on a Royal Caribbean ship two years ago while serving in Iraq. He made an initial $500 deposit, but as his vacation drew closer, he decided that because of his busy work schedule, he would have to cancel the reservation and receive a full refund.

At the time of cancellation, I made a point of instructing the reservation agent to not send a credit to the debit card as I had canceled the card, but rather, to send a check direct to me. The agent agreed to do this.

But instead, Royal Caribbean tried to credit his closed US Bank card. The bank just sent the refund back to the cruise line.

The harder Sawyer tried to get his money back, the more difficult it became. Royal Caribbean insisted that “too much time had passed” between now and his cruise date. Then it simply ignored his further attempts to secure a refund.

I contacted Royal Caribbean, too, and got the same response: nothing.

So Sawyer decided to go after his bank, which had returned the deposit to Royal Caribbean.

I sued US Bank in a local small claims court for the overdraft fees they charged my account and also for the $500 deposit that was never returned. Their legal department called and offered to settle out of court, and I accepted.

Very interesting. Just goes to show that you can’t leave any stone unturned when you’re working a case. That’s a lesson learned for this ombudsman.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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2 comments

  • Paul Higgins

    As illogical as it seems, Royal Caribbean was doing exactly what it’s required to do. The agreements the credit card associations (e.g., Visa and Mastercard) have with merchants require that all refunds be made back to the original card, be it a credit card or a debit card. Failure to abide by that requirement can result in fines, higher processing fees or suspension of the “privilege” to accept credit cards. (The requirement is there to stop fraud.)

    The agent at Royal Caribbean probably wasn’t aware of that requirement. As many times as I’ve told the front desk staff where I work, I’m sure that are some who forget.

    It was US Bank that messed up by not accepting the refund and returning it to their customer. At least they had the brains to settle the small claims court case.

  • Peter

    Actually, that’s half right.

    Royal Caribbean is obligated to attempt to refund back to Mr. Sawyer’s original form of payment. However, once notified by US Bank that the the accout was closed, they then were well within their rights to send a check to the client, obviating the need for court actions.

    US Bank had no way of returning the money to Mr. Sawyer – they no longer had a business relationship with him, as his account had been closed.

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