OnStar class action lawsuit overview:
- Who: Plaintiff Victoria Ramirez has filed a class action lawsuit against OnStar LLC.
- Why: OnStar allegedly continued to deduct auto-payments from her bank account after she canceled her subscription.
- Where: The OnStar class action lawsuit was filed in California federal court.
OnStar LLC continues to debit auto-payments from customers’ bank accounts long after they cancel their subscription to the emergency assistance and navigation services, according to a class action lawsuit filed Feb. 6 in California federal court.
Plaintiff Victoria Ramirez says her Cadillac vehicle was originally equipped with OnStar’s services. On April 3, 2019, Ramirez says she canceled the service and received notification the same day that her OnStar services were canceled and the hardware was deactivated.
In July 2022, Ramirez discovered that OnStar had been deducting $27.99 from her bank account each month for about 40 months after she canceled the service, totalling more than $1,000 in unauthorized deductions, the OnStar class action lawsuit alleges.
Ramirez says she immediately called OnStar’s customer service to demand the company stop debiting her bank account for the services she canceled in 2019. She also requested a refund for the unauthorized charges.
Instead of refunding the full amount of unauthorized charges, OnStar allegedly informed her that it had processed a refund of $83.97 “as a one-time gesture of goodwill,” according to the OnStar auto-payment class action lawsuit.
One payment in this amount was reportedly automatically deposited in her bank account. Ramirez says she also received a paper check, which she says she declined to deposit because she believes she is entitled to a full refund.
Plaintiff says company has ‘practice of exploiting’ OnStar auto-payment features
OnStar has a “history, pattern, and practice of exploiting” customers’ OnStar auto-payment features by continuing to debit their bank accounts without consent after they have canceled their subscription, the OnStar class action lawsuit alleges.
Ramirez notes that she had to agree to OnStar’s terms and conditions, which include an arbitration clause. Based on this requirement, she says she first filed her claims in arbitration, but her claims were allegedly rejected by the American Arbitration Association because OnStar failed to comply with the association’s policies.
The AAA reportedly informed the plaintiff’s counsel that she could submit her claim to the appropriate court for resolution. Upon this suggestion, she filed the OnStar class action lawsuit on behalf of herself and other U.S. consumers whose bank accounts were debited by OnStar without their written preauthorization within the last year.
The OnStar auto-payment class action lawsuit asserts claims for violation of the Electronic Funds Transfer Act, California’s Unfair Competition Law, and California’s Consumer Legal Remedies Act.
An OnStar auto-payment class action lawsuit with similar allegations was filed in Missouri federal court in 2020.
Have you been charged for an OnStar auto-payment after you canceled your subscription? Tell us about your experience in the comments!
Ramirez is represented by Abbas Kazerounian, Pamela E. Prescott, and Ryan L. McBride of Kazerouni Law Group APC and Nicholas Barthel of Barthel & Barthel APC.
The OnStar auto-payment class action lawsuit is Victoria Ramirez v. OnStar LLC, Case No. 3:23-cv-00225-H-AGS, in the U.S. District Court for the Southern District of California.
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20 thoughts onOnStar class action claims company made auto-payments from customer bank accounts after cancellation
Is this still ongoing. Just had this happen to us.
I cancelled by phone call on April 1, 2024. I recorded the call for my own personal recollection. Then, on April 17, 2024 i was charged again. I called OnStar again on April 19, 2024 and the customer service rep apologized and said that I would get a refund within 3 to 5 business days. Each of these phone calls took almost 30 minutes each. Today is Thursday April 25, 2024, and I still haven’t received my refund. I know it hasn’t been five business days yet, but most merchants will refund you within the first three business days. I’m waiting to see what happens.
For the 5th time now OnStar has fore billed my account even with my card turned off and no money in my account and have overdraft me again. They say they never even billed me .
I just called OnStar for the 5th time after finding out that I was being charged monthly even though I cancelled both car memberships s year ago. I see they have been taking money out and the other day they ssid they can give me back a potion, a $55 as a refund! They took out way more than this but said they are reviewing the acct to see if they can refund the whole amount. I took a look at my account that day and they took out $15 and $55 dollars! Then refunded $55! So you took out more money and then put it back in? That is not a refund, I’m still waiting for the original money they stole. I called my bank on Saturday and they will no longer allow them to withdraw funds from our acct. Horrible experience and I was loyal to OnStar for many years.
This is exactly what they’re doing to me as well. … They continued to deduct $15 since my cancellation… Called numerous times .. Finally thought I was getting help and then took a look at my account that day and they took out $15 and $55 dollars. Now I’m waiting to see if after taking to another person, if I’ll get my refund.
This is exactly what they’re doing to me as well. … They continued to deduct $15 since my cancellation… Called numerous times .. Finally thought I was getting help and then took a look at my account that day and they took out $15 and $55 dollars. Now I’m waiting to see if after taking to another person, if I’ll get my refund…..
Had a car for a month from dealership and returned for sketchy dealerships practices. I have called 4 or 5 times now and been told it was cancelled every time. Still as of this morning getting charges trying to come out of my card. Every time I ask for a conference email and every time they say they don’t control the email and I never get one. Worst company I have ever dealt with and they need to be sued out of existence for this. This is appalling and wide spread from what I have seen inline.
I canceled my service back in July 2021. Recently I discovered Onstar has charming my card for six months with my knowledge. I called them and told them about it. They only four months are going back. I did know Onstar was dishonest like that.
This happened to me a couple of times November and December last and January this year they try to blame it on the system I cancelled my plan with them because they said they where going to the 5g in December and my car has the 2g so I called and cancelled my plan and was still taking money from my account
Eman is this y onstar errors- the cause for faulty issues rand parts failing. I understood this to be a faulty ecm, relay, wiring and emissions issue is what all the dealer visits repairs done myself several times as well to be the reason y ? Please add me to the list as well.