SLS Hotel “Hold” on Funds Actually a Withdrawal Class Action

This class action bring suit against the SLS Hotel in Beverly Hills and Marriott International, Inc. According to the complaint, the hotel said it would place a hold on funds on a credit card, for incidentals during a guest’s stay, but instead actually withdrew funds via a debit card. The complaint alleges that the hotel should pay interest on the days when the funds were removed from guests’ accounts.

The plaintiff in this case, Noah Tannenbaum, checked into the SLS Hotel on December 31, 2020. At the time, the hotel told him it would put a hold on funds for incidentals. Tannenbaum gave the hotel his debit card for this use.

However, the complaint alleges that SLS did not put a hold on funds in his account but actually withdrew $300 from the bank account associated with the debit card.

During his stay, the complaint alleges, Tannenbaum spent a total of $78 on parking and miscellaneous items. He checked out on January 4. At that time, the complaint alleges, the hotel charged his debit card $78, then returned the $300 it had previously withdrawn.

The complaint claims, “The SLS Hotel did not, however, return to Mr. Tannenbaum the interest that accrued from December 31, 2021 through January 4, 2021 [on the funds withdrawn from his account]. The SLS Hotel kept that accrued interest.”

The complaint quotes from the Digital Entry Terms of Use contract that Tannenbaum entered into with the hotel, claiming it does not authorize the hotel to actually withdraw money from Tannenbaum’s account.

According to the complaint, Tannenbaum was unable to use the $300 for any other purpose during his stay, and the SLS Hotel and Marriott have profited by keeping the interest earned on the funds during that time.

Three classes have been defined for this action:

• Class One is all people who, between January 4, 2018 and the present, (1) paid for a hotel room at the SLS Hotel, (2) used a debit card for incidentals, (3) had money withdrawn from their debit card for incidentals, and (4) were not returned the interest accrued on the debited account.
• Class Two is all people who, between January 4, 2018 and the present, (1) were told by the SLS Hotel that it would place a hold on their card for incidentals, (2) paid for a hotel room at the SLS Hotel, (3) used a debit card for incidentals, and (4) were not returned the interest accrued on the debited amount.
• Class Three is all people who, between January 4 and the date this lawsuit is resolved, (1) paid for a room at the SLS Hotel, (2) used a debit card for incidentals, (3) had money withdrawn from their debit card account for incidentals, and (4) were not returned the interest accrued on the debited amount.

Article Type: Lawsuit
Topic: Contract
Tags: Breach of Contract, Failure to Honor Terms of Agreement, Withdrawal Instead of Hold