DETROIT – Travel rentals obtained through online websites are becoming more and more popular as an alternative to traditional hotels and motels.
Alexandra Berry of Birmingham said she has used one of the most popular sites, VRBO, or Vacation Rentals By Owner, many times over the past eight or nine years. In late 2015, she thought she had found the perfect rental for a Florida vacation during the Christmas season.
The house in Key West wasn't inexpensive, but it would hold four adults and four children and the holidays are a busy time.
"I mean, Christmas time in Florida, it's like, you're not going to be by yourself," Berry said with a laugh.
She said she found her dream rental on VRBO, received an email from the property manager through the site and made the arrangements. She believed everything was happening through VRBO and felt confident in her negotiations.
Berry was asked to pay the $4,500 via a bank transfer. She didn't consider that too unusual; she's done it before with smaller sums of money. This time, things took a disturbing turn. When she didn't receive a confirmation of her payment and further instructions about the property, she kept emailing the "property manager," but couldn't get a response. Then, she found a phone number for the property and reached a woman.
"She calls me back and she's like 'So, what exactly is your name?' So, I give her my name and she's, like, 'We don't have any information from you,'" Berry told Help Me Hank. "Apparently, the email address got hacked."
Berry said she was told the email address she used was very similar to the real property manager's address, but it was the wrong address. She contacted VRBO customer service and was offered $1,000 compensation. She didn't feel that was fair. Instead, Berry filed a lawsuit in Michigan, arguing "VRBO promotes fraudulent behavior through its online services by not offering the proper security to its customers."
"You put on there, yeah, we're a trusted and secure website, but how secure are you? When, you know, someone hacks your system?"
HomeAway, the parent company of VRBO, released a statement saying in part, "HomeAway has made significant investments in processes and technology to help detect, prevent and mitigate suspicious activities."
Fine print complicates court battle
Berry filed suit in Michigan. Now, attorneys for VRBO are arguing the case should be heard in Texas, where the company is based. Berry feels that would be a hardship for customers, especially for people here in Michigan.
"I think they're really trying to frustrate people so they eventually just drop it," said Berry.
Beware the fine print
Legal expert Neil Rockind says many of us are too eager to click and accept all those terms and conditions on the many websites we visit. He says this case shows the importance of reading the terms and conditions, no matter how many pages there might be.
Many companies include language that outlines how consumer disputes will be handled. You should know beforehand what your options will be if there is a big dispute. Rockind says you shouldn't necessarily give up, however, if the fine print seems to give the company the advantage.
"You can challenge the enforceability of a contract that contains fine print. The company basically told you 'Take our terms or leave it' -- you can contest that." Rockind told Help Me Hank.
Berry is hoping the court will side with her. Currently, there is a court hearing scheduled for June 14.
Additional response from HomeAway
HomeAway wouldn't respond to the specifics of this case, but released this statement in response to our story.
"We employ fraud detection methods that encompass a combination of technology and human review, but we cannot disclose specific components of our processes as they are proprietary, and discussing them may provide criminals with information to avoid them.
"To avoid phishing incidents, we educate travelers both onsite through our Security Center and via email communications that explain online identity theft and provide tips for protection. While it's important for travelers to take the necessary precautions to protect themselves, phishing is a rare occurrence among HomeAway owners and property managers, only happening with 0.02 percent of transactions.
"The No. 1 thing travelers should remember is that paying for a property via credit card, directly through HomeAway's site is the most secure method. Doing so provides travelers with full payment protection and peace of mind, thanks to our Book with Confidence Guarantee."
Click here to see our security center for more information.
Booking online, other safety suggestions
Whenever you're booking a vacation spot online, you can take additional steps to protect yourself.