Contract confusion: Don’t let your vacation get lost in translation

On second thought, maybe Haroldy Woods should have paid full fare for her train ticket from Frankfurt to Passau, Germany.

But a ticket agent assured her that signing up for a Deutsche BahnCard would save her money – about 25 percent off her 80 euro fare. Then she handed Woods a contract for the membership program in German, which Woods signed.

Just one problem: Woods doesn’t speak German.

Three years later, she paid a price for glossing over the Teutonic fine print. A Netherlands-based collection agency contacted her, demanding 97 euros (about $127). It turns out that the BahnCard is automatically renewed, a fact that she would have known if she’d read the contract.

“This is such an injustice,” said Woods, a retired flight attendant who lives in Dallas. “The agent never mentioned any recurring charges or annual renewal fees, and I couldn’t read the application in German.”

I contacted Deutsche Bahn on her behalf – I’ll tell you its answer in a moment – because contract problems like Woods’s are not that uncommon.

Travel companies like putting pieces of paper in front of their customers that are either in German or read as though they were (and as someone who speaks German, I think I’m allowed to ask: Is there really that much difference?).

For example, when Kim Usiak dropped off a friend at Miami International Airport for a flight to Brazil, she witnessed an unpleasant confrontation between a TAM Airlines agent and her friend.

“They pulled out a new, one-page ‘declaration of responsibilities’ [contract] written in Portuguese, which they were now requiring passengers to sign,” Usiak remembered. “We requested an English version but were told they had none. The basic translation of the document was that TAM was relinquishing all liability for baggage.”

If that sounds absurd (which it is), then you won’t be surprised by what happened next. When Usiak’s friend refused to sign, a supervisor threatened to have her luggage unloaded from the plane. Usiak flipped out her iPhone to record the conversation, and then a TAM employee threatened to call the police.

Finally, Usiak’s friend decided to sign the agreement rather than miss her flight.

I contacted TAM to get its side of the story. It didn’t respond.

A few years ago, I came across an even more troubling lost-in-translation story. A reader had booked a hotel in Switzerland for a week through a travel agency, but a paperwork mix-up had led him to believe that his daily rate was the weekly rate. Hotels often ask you to sign a slip of paper when you check in, acknowledging the price of your room and any additional charges that may apply. This hotel’s agreement was in French, but the traveler didn’t read French. So his best chance of clearing up the misunderstanding became yet another casualty of the Tower of Babel.

His final bill was considerably higher than he thought it would be. When he balked at paying it, the hotelier threatened to call the police. An expensive lesson learned.

Car rental customers encounter the foreign-contract problem all the time. Their travel agent tells them they have a guaranteed rate of $19 a day, but they end up signing an agreement for $39, plus optional insurance, plus fuel purchase option, and before you know it, the rate has quadrupled. What’s worse, they don’t find out about the problem until they return the vehicle and are presented with a massive bill by an employee who can’t speak English.

Contracts don’t have to be written in another language to be meaningless, of course. A few weeks ago, I heard from reader Ilana Goldman, whose travel insurance claim had been denied. Under the terms of her agreement, she had to take her case to arbitration. But the arbitration requirement seems like nothing more than a stalling tactic by the insurance company. The arbitrator refused to accept her case because “the business in this matter has not complied with our requests in the past.” I suggested that Goldman sue the insurance company. The matter has yet to be resolved.

And what of Woods? Deutsche Bahn denied her request to drop the matter. In an e-mail, a representative explained, to absolutely no one’s surprise, that rules are rules.

“As we did not receive a notice of cancellation in time, the BahnCard for the subsequent period of validity was issued,” he wrote. “In the meantime the account was turned over to a collection agency since we received neither a response to our reminders nor the payment due.”

Next time, Woods may want to just buy a train ticket.

(Photo: Chuck C oker/Flickr Creative Commons)

  • Gary

    One question here, Chris — did Woods get her renewed BahnCard 25 in the mail? (Each card is valid for a year and then you get a new card every year.) If not, Deutsche Bahn doesn’t have a case. If they didn’t provide the service, they don’t have a claim on the customer.

    One other avenue of attack here is that Deutsche Bahn’s handling of BahnCard customers who don’t have a home address in Germany is really disorganized — even if the customer speaks German. I should know this (I have had a BahnCard 25 for several years, am married to a German and speak German but we live outside Germany). It is quite difficult to use the website from abroad, sometimes the website only permits German addresses to be entered, they don’t allow you to correspond with BahnCard Service electronically (only by calling a toll telephone number) and so forth. I wouldn’t be surprised if they never mailed the card to Woods. I only got my second-year card (which I did want) when I called them up and bugged them. And when I got it, they wouldn’t accept payment by credit card (even though the initial card had been paid for by credit card) or by cash at a train station. They would only accept payment by bank transfer, which I didn’t want to do for various reasons. Deutsche Bahn should be ashamed enough of their handling of foreign customers to be willing to drop this case.

    The third avenue of attack is the travel agent. Woods got the card on the agent’s advice, and the agent probably didn’t know about the BahnCard renewal clause (which DB does make clear in its fine print, although not very loudly and not in its front-screen advertising plugs for the cards). Also, why did the agency encourage her to buy a BahnCard 25 (which costs €57) to save 25% off an €80 fare? I think there’s a very good case for negligence on the agent’s part here.

    The fourth avenue of attack is the renewal clause itself (it is supposed to renew automatically if you don’t let them know six weeks before the expiration date). I wonder if it would really hold up in court, especially for someone from abroad who got their BahnCard 25 with the assistance of a travel agent.

    The fifth avenue of attack is the collection agency. I wonder if she might be able to ignore this one. Do European collection agencies have any leverage over US customers?

    Overall, this sounds like a case that Woods could win.

  • Phil

    Why in the world would anyone sign something they don’t understand, especially in a foreign country and in the country’s langauge? One might try and find someone in the immediate area that could translate it, if not don’t sign it, who knows you might be giving away your house. Can’t feel sorry for these people.

  • Peter

    A meeting of the minds, mutual agreement, or mutual assent is a phrase in contract law used to describe the intentions of the parties forming the contract. A common understanding in the formation of the contract is a necessary and required condition or element to the formation of a contract.

    If you can’t understand what you are signing, you can’t form the necessary intent. Given this fact pattern, there is no contract.

  • Joe Farrell

    Didn’t we have this exact issue a few months ago? I am certain this exact same issue was discussed here so just copy all of my comments from that post – Chris is repeat issues now – the desk clerk post was also done a couple of months ago -

  • Carver

    @Peter

    That’s not true. The fact that you do not understand what you are signing does not in any way prevent the formation of a contract.

  • Christopher Elliott

    @Joe, yes. I used her example again, but built it out into a full column. Good eye.

  • Arizona Road Warrior

    @ Gary – “The third avenue of attack is the travel agent. Woods got the card on the agent’s advice, and the agent probably didn’t know about the BahnCard renewal clause (which DB does make clear in its fine print, although not very loudly and not in its front-screen advertising plugs for the cards).”
    - – - – - – - –
    It wasn’t a TRAVEL agent but it was a BahnCard TICKET agent.

  • KathyJ
  • cjr

    Yes, I distinctly recall this one as well, as it was right before I went on a vacation that included a stop in Germany and the use of the Bahn.

    I really did find using the Bahn website to be a headache, but once I got the hang of it, I know I could use again in the future.

    Getting from Warnemunde to Rostock wasn’t so bad, but I was then buying my ticket to go on once I got to Rostock. The woman at the ticket counter spoke little English, and in the end, she didn’t try and sell me anything I didn’t want or need. But I also think she only ended up giving me a ticket for one direction, not both.

  • Cliff Woodrick

    As we travel in Europe for two to four weeks at a time we buy a EURO Train Pass in the US four / five weeks before we depart and start it at the first station master when we use it the first time. We buy the pass for one / two and sometimes three countries as needed. The pass has saved us over 300% the cost of individual tickets. Also we buy First Class as we can reserve seats. Also we have been served a meal and snacks on a long run.

    Have a wonderful day