5 On Your Side

5 On Your Side finds complaints piling up against OBX rental company

There are two deadlines this week related to an Outer Banks rental company that's under fire from customers and under investigation by two state agencies.

Posted Updated

By
Monica Laliberte
, WRAL executive producer/consumer reporter

There are two deadlines this week related to an Outer Banks rental company that’s under fire from customers and under investigation by two state agencies.

Since then, Monica Laliberte has heard from a number of renters with new frustrations resulting from Dare County’s ban on visitors because of COVID-19, and tens of thousands of dollars in refunds that Surf or Sound Realty promised, but now says won’t happen.

"I’d like to have my $4,511.35 back," said Lisa Wollett of Angier.

"They got $2,857.42, and I got nothing except a headache," said Sally McNamee of Cary.

Heide Doyle paid $3,047; Heather Williams paid $2,200, and her total includes fees for cleaning and to heat a pool.

None were able to go to their vacation rentals.

Dale Petty owns Surf or Sound Realty. Initially, the company promised refunds for vacations canceled when Dare County banned short-term rentals, then emailed customers saying in part, "After much consideration, we have decided not to issue cash refunds to guests who had reservations between the dates of 4/4/20 and 5/15/20."

Petty says he is aware that the North Carolina Real Estate Commission said refunds are owed. "However, we believe that opinion is wrong and would have long lasting implications for our business on Hatteras Island," he wrote.

5 On Your Side called and emailed Surf or Sound, but they have not responded.

Between them, the North Carolina Real Estate Commission and Attorney General Josh Stein have seen more than 350 complaints against Surf or Sound.

"We believe that the company owes their customers refunds, and we’re going to do what it takes to try to make that happen," Stein told 5 On Your Side.

He gave Surf or Sound Realty until the end of this week to respond.

Surf or Sound issued its own deadline last week. Emailing customers that they have until this Friday to accept "dollar for dollar transfers" of vacation weeks.

"Moving weeks to 2021 does not work for everyone," said McNamee.

"I think they need to honor what they told us they would do," added Wollett.

5 On Your Side talked with another renter who contacted the homeowner directly, and is waiting to hear back.

Some renters have also filed a lawsuit in Dare County, asking a court to declare their complaints a class action.

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