Collection agency demands $1,700 for lost airline ticket — should I pay?

airline ticketTravel companies routinely use collection agencies as tools to enrich themselves at their customers’ expense. That’s what seemed to be happening to Gabrielle Durana when her online travel agency tried to strong-arm her into paying $1,700 for an airline ticket it lost.

But looks can be deceiving.

Durana picks up the story.

For the past year-and-a-half, Orbitz has been ignoring my letters and emails about a ticket that I bought and that Orbitz lost.

This ticket from Madrid to Buenos Aires was intended as a gift for my uncle. He was going to celebrate with his classmates their 50th high school anniversary. Orbitz misplaced it, which forced me to buy a second airline ticket from a different travel agent, in a rush, to make sure that my uncle would not miss his reunion.

They did apologize at the time for their mishandling and offered some voucher as a token to soften the distasteful experience and the disappointment of this long time loyal customer.

About a year ago, I got a letter from a collection agency demanding I pay for the $1,700 lost ticket. When I called the collection agency, the agent threatened me with my credit report. When I asked for a supervisor, her boss told me to disregard their letter. He said they were going to contact Orbitz and cancel their claim. I felt at peace and hung up.

But the peaceful, easy feeling didn’t last long.

On July 20th, I received another threatening letter from the same collection agency, asking me to pay for the original $1,700 ticket.

I am at a loss; this is probably ruining my credit. Orbitz never bothered to reply to any of my emails after the collection agency contacted me the first time. Please help!

I’ve seen a lot of this recently, to the point where I had to write a column about it for MSNBC.

So I asked Orbitz for its side of the dispute. Here’s what its said:

Apparently, this customer never filed an LTA (Lost Ticket Application) for her lost tickets, instead she simply disputed the charge.

There is documentation in her account from our Fraud Dept. stating that when she disputed the charge for the lost tickets, she was refunded twice. One refund from her credit card company and one refund from Orbitz, hence the collection letters to try to recoup one of the refunds.

In other words, Durana didn’t go through channels when her paper ticket went missing. Rather than file a lost ticket application and wait for a refund (which can take months, and sometimes a year) she disputed the charge on her card. Both her credit card and Orbitz refunded her. Now Orbitz wants its money back.

I asked Durana to check her records. Her response:

I was NEVER refunded by Orbitz. I disputed the charge with Amex and they did reverse the charge. The reason why I never filled a LTA is because I did not lose the ticket. They did! I never even had the ticket in my hands.

I looped back with Orbitz to see if it could double-check its records. A few days later I heard back from Durana. Orbitz had phoned her, they had reviewed her records together and discovered that indeed, she had been double-refunded.

Durana repaid Orbitz $1,700.

Is all forgiven? Durana is still upset about the whole episode.

I am less angry at Orbitz because I see that they are honest, but after this traumatic experience with an on line travel agent, I’ve only bought airlines tickets directly through the airlines, never again through an intermediary.

I don’t want to have to deal with the customer service of an online travel agent anymore in my life. Even Orbitz which is a big one was really bad at handling the pb when it happened. I thanked the person who called me from Orbitz and told her to work on the customer service to retain their other good clients.

Certainly, Orbitz could have done a better job communicating its position to Durana. At the same time, she could have done a better job checking her own credit-card records to make sure she hadn’t been paid twice.

I guess we can call it even.

(Photo: bebop717/Flickr Creative Commons)

  • http://www.atme.org Kristin Zern

    Ok so she should have ckd her cr card statement more carefully. But what does it mean exactly that Orbitz lost the ticket. Surely she printed out a statement, kept the link or whatever. If Orbitz somehow “lost” the booking, couldn’t they just reinstate it when she sent them the paper work?
    And aren’t these all ticketless transactions as e tickets?
    I much prefer to book directly on an airline site. First of all there is usually more choice of flights, times and usually lower prices. I do however ck in at Orbitz and other sites like Kayak to get an idea of options.

  • Beth

    Good to know what to do in a case like this. Although, my budget is so tight that I’d definitely notice an extra $1700!

  • jimmy

    instead of continuing to complain about the treatment she received from the company (which she deserved) can she maybe take time out to explain how she missed $1700 being refunded into her account?

  • http://www.cockam.com ajaynejr

    Generally, when a collection agent calls or sends a letter you should not “just pay up”.

    You need to do research to find out what the bill or debt is about. In Durana’s case she should have been able to locate the double refund.

    When you order airplane tickets and they never arrive then you should contact the travel agent or airline telling them that. You may need to fill out some paperwork but I think the seller should be doing the heavy paperwork such as the notarized documents.

    Now if you never ordered the merchandise or services or tickets at all, even if you did business with the company some time ago, I think it is fair game to start the dispute with your credit card company without “dealing first with the merchant in good faith”.

  • http://cestbeth.com/ Elizabeth Smith

    I don’t know how anyone doesn’t know they’ve been double-refunded $1700! Now to me, that’s amazing!

  • Linda

    How wealthy does a person have to be to not notice $1700 credit on her credit card??

  • JB

    She may be one of those people that just pays off her credit card when the statement arrives. This case shows one reason why the statement should be checked carefully before it’s paid (to check for expected refunds). A more important reason is to ensure someone hasn’t charged to your account. Watch those statements!

  • Victor Ozols

    Maybe there are people out there who wouldn’t notice being paid $1,700 twice, but after the collection agency got in touch, wouldn’t most reasonably intelligent people check their records?

  • David Z

    And aren’t these all ticketless transactions as e tickets?

    There are very few scenarios where it’s just not possible to issue e-tickets. But I notice it happens mostly with travel agencies “mixing” different airlines (e.g. Air Berlin and British Airways) for especially international flights.

    Based on the details of this, a paper ticket had to be issued. Unfortunately those things can get lost.

    IMHO Orbitz can file that Lost Ticket Application (LTA) themselves. They probably just don’t want to do it, which can be quite a shame.

    Like some of the commenters here, I’m rather darned at Ms. Durana not having noticed Orbitz’s refund. But then, many people “skim” rather than read thoroughly nowadays, sheesh.

  • Bob

    I’m not sure I’d notice a $1700 credit on one of my heavily-used cards. I always look at all the charges on my statement for anything fishy, but the credits?

    If I’m not expecting one, I don’t really scrutinize the credits.