LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

QLD Debt Collectors for CGU Insurance - Flooded Hotel Room

Discussion in 'Australian Consumer Law Forum' started by Smiley, 1 April 2015.

  1. Smiley

    Smiley Well-Known Member

    Joined:
    1 April 2015
    Messages:
    33
    Likes Received:
    5
    Hello, a debt recovery group ( debt collectors) is seeking $6k worth of damages due to a hotel room that was flooded. I would appreciate anyone's views on this please.

    1. My cousin stayed in a hotel in QLD in September 2013 for several nights. On the last night she returned to the room and turned on the bathroom tap. No water came out. She accidentally left the tap on.

    2. She advised reception of the water issue and was advised water maintenance was going on and should be returned later. No signs of water maintenance anywhere in hotel nor in my cousins hotel room.

    3. She went out and returned to find the room flooded. On check out, the hotel took her bond of $300. My cousin states that had she been warned about the water maintenance from the hotel, she would not have turned the tap on in the first instance.

    4. In Feb 2015, a debt recovery agency contacted my cousin and advised they act on behalf of CGU Insurance and seek $6,517 due to damage. Breakdown as follows:
    Loss of rent - $232 per night for 17 days ($3,944)
    New carpet $1,990
    Gold Coast cleaning $583

    5. I asked the debt recovery group where is the contractual obligation between my cousin and CGU? They replied as this is a debt recovery, no contractual obligation is required.

    6. My cousin states that she called the hotel to obtain any file notes they may have on their system and spoke to a manager. The manager verbally advised my cousin she was not liable and asked the debt recovery agent to contact him/her.

    7. My cousin states that the debt recovery agent contacted the manager and from that conversation, the debt recovery agent is now offering $5k to settle or will seek instructions from their client to comment litigation.

    Please help.
     
  2. Tim W

    Tim W Lawyer

    Joined:
    28 April 2014
    Messages:
    1,722
    Likes Received:
    404
  3. Sophea

    Sophea Well-Known Member

    Joined:
    16 April 2014
    Messages:
    2,300
    Likes Received:
    335
    I Smiley,

    The way that insurance works is that they are assigned a debt or a right of action by their insured. So the hotel's cause of action against you to recover compensation for the damage to the hotel room becomes that of the insurance company. Its like when you have a car accident and the insurers sue each other or the other driver on behalf of their insured driver. There doesn't need to be a contract between you and the insurance company per se. The hotel has obviously made an insurance claim through their insurer and the insurer is seeking to share the blame by going after the person who "caused" it.

    I would be calling the hotel back and speaking with this manager again and obtaining confirmation that she is not liable either by having the person agree to the phone call being recorded or providing a letter stating this. Usually if legal proceedings are underway or foreshadowed, the insured is instructed not to say anything about liability etc.

    Have you spoken with the insurance company about the conversation you had with the hotel manager?
     
  4. Smiley

    Smiley Well-Known Member

    Joined:
    1 April 2015
    Messages:
    33
    Likes Received:
    5
  5. Smiley

    Smiley Well-Known Member

    Joined:
    1 April 2015
    Messages:
    33
    Likes Received:
    5
    Hi Sophea, thank you. My cousin advised that she did call the hotel manager back and asked if they could put this in writing, but was advised they could not. I have asked her to make file notes of all conversations she has had and may have in the future.
     

Share This Page

Loading...