Emily Sortor  |  July 6, 2020

Category: Legal News

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Blue file folders with tabs, the front tab reading "subscription fees"

A former OnStar customer says the auto communications and security provider continued charging him monthly, even after he canceled his subscription to the service.

A Missouri resident claims he was charged for OnStar services long after he canceled his subscription. In filing the OnStar class action lawsuit, the plaintiff has taken up the cause of thousands of affected customers he thinks were injured by OnStar’s conduct. He believes OnStar routinely violates unfair deceptive practices acts of many states, including the Missouri Merchandising Practices Act.

In his complaint, the plaintiff recounts his interactions with OnStar. He explains that in 2018, he bought a General Motors Lucerne vehicle and purchased electronic and radio services from OnStar for it in June 2018. When he purchased these services, the plaintiff explains, OnStar then began to withdraw around $34.99 per month from his bank account.

In September 2018, he sold his Lucerne and subsequently canceled his services with OnStar on Sept. 24, 2018. He says when he canceled his services, he expected he would no longer be charged.

However, according to the OnStar charges class action lawsuit, the company continued to withdraw $34.99 from the plaintiff’s account each month until around May 2019. In May 2019, he allegedly contacted OnStar and informed the company that it were wrongfully charging him each month.

The OnStar subscription cancellation class action lawsuit says the plaintiff asked for a refund of the money he was charged between September 2018 and May 2019. However, he was allegedly denied the request and was told by the company that it has a policy against offering a refund in such an instance.

The OnStar cancellation problems class action lawsuit argues that the company has violated the Missouri Merchandising Practices Act because it unlawfully collected the plaintiff’s money without his authorization and consent.

The plaintiff says he was not the only person who was wrongfully charged for services after cancelation — to support his argument that the OnStar cancelation issue should be handled as a class action lawsuit, he stresses the point that the company has a specific policy to not return money collected from consumers after they have canceled their subscriptions.

Rendering of man with tie on looking through magnifying glass at the word REFUND in redThe OnStar services cancellation class action lawsuit asserts that OnStar was well aware of or should have been aware of state laws against this collection of funds.

According to the plaintiff, the company knowingly put profits ahead of its consumers’ best interests and ahead of the law.

The OnStar subscription cancelation class action lawsuit asserts that OnStar was unjustly enriched by the practice of charging consumers beyond their cancellation.

The plaintiff says he and other consumers were financially injured by OnStar’s conduct because they were charged for a service that they were no longer receiving after they canceled their subscriptions.

In light of this injury, the plaintiff asks the court to award compensation for injury suffered, statutory damages for violation of the law and funds to cover attorney and court fees.

In related legal news, consumers have challenged the subscription policies of companies in a range of industries recently.

The New York Times, Apple, food delivery service ButcherBox and cosmetics retailer Boxycharm have all been hit with class action lawsuits from customers who say their subscriptions to these services were auto-renewed without their consent.

In these subscription charge class action lawsuits, the customers say they still received the service, whereas the plaintiff in the recent OnStar class action states that he did not receive the OnStar service after his cancellation. In all of these cases, consumers argued that the companies continued to charge consumers for services even if they did not want them.

Having a charge automatically withdrawn from a bank account can be convenient for consumers who do not want to have to remember to pay a bill every month. However, companies may be taking advantage of having access to consumers’ account and card information by charging them for services without their consent, even if they try to cancel the service.

Since being filed in the Circuit Court for St. Louis County in Missouri, the OnStar charge class action lawsuit has recently been removed to federal court.

Have you ever been charged for a service after you canceled it? Share your experiences in the comments below.

The plaintiff is represented by Ronald J. Eisenberg and Robert Schultz of Schultz & Associates LLP.

The OnStar charges class action lawsuit is T.K., et al. v. OnStar LLC, Case No. 4:20-cv-00885, in the U.S. District Court for the Eastern District of Missouri. 

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25 thoughts onOnStar class action lawsuit claims drivers charged for ongoing service after cancellation

  1. Dr Eright Johnson says:

    He is not the only one. Not only was I charged many times after cancellation, even the refund was sent as an additional charge. Even more so, what about the cancellation of the 2G. Many of us purchased new vehicles that are NOT longer compatible to 5g, and are now driving around with a huge paper weight on our rearview mirrors. Onstar knew this in 2013 and yet they continued to install the old system in our brand new 2014 vehicles for which we all paid a huge amount of money for such an addition that has become null and void.

  2. Paula D says:

    They have taken $315.24 from my bank account since September and I wasnt a subscriber, they haven’t refunded any money. I had to pay to get them stopped to my bank. They have caused my bank account to be in negative and my budgeted bills I paid have been returned with charges. I seen that it says that if you are a subscriber that you authorize them to hit your account 2 times for payments on returns yup they sure did do that but never return monies from the rounds they take. They have caused me undo hardship and stress. This is not ethical business practices.

  3. Thomas Power says:

    Is there any Lawsuit regarding the cancellation of OnStar services for older GM vehicles. I believe I was misled when purchasing my car that this was a satellite-based system. I was not aware that the service wouldn’t last the lifetime of my vehicle. GM should be named in this lawsuit as well.

  4. Chris says:

    This is happening to me. I called middle of last month to let them know I had cancelled my service almost a month and a half prior. I was told that the case needed to be “escalated”. I gave it a couple weeks and called back and was told the same thing. Then I called the other day and demanded to speak with a supervisor about them stealing money from me. Was on hold for half an hour with no result

  5. Alex Cook says:

    This is happening to us as well. Canceled two months ago, and still being taken out. Even though we were told day one that no more funds would be taken. Please add us . The wife and I are retired and on a very fixed income. With the economy the way it is, every penny counts. Going to call them again today.

  6. Kaitlen Akinsuroju says:

    I’ve just got off the phone with a promise of a supervisor callejng me back due to me refusing to wait for a “ Refund request”. I have cancelled my services with onstar last Friday in addition to me being assure that I will no longer be debited I was sent an cancellation confirmation email however I was still charged so please include me as well, I have prof and etc.

  7. CARLETT ENGLISH says:

    They are doing the same thing to me even though I have cancelled several times and reported my credit card stolen and got a new card number and they just charged me one lump sum of past due charges from my date I cancelled it in May of 2021 after my free trial ran out after new purchase! Add me to this lawsuit or to the next one! They just give empty promises about refund and cancellation but there has been no resolution to this issue and I know they are taking advantage of people daily!

  8. Naomi McNamara says:

    I cancelled my account in 2017. OnStar says the account is closed. However they still pull money from my checking account each month. Today on a call with them, they confirmed that I do not have an active account and should not being billed. Because their system does not show a record of the billing, they cannot offer a refund. OnStar’s business has fraudulent billing practices and needs to be investigated and sued for damages.

    1. Matthew O. Garcia says:

      I’ve been calling every month for over 2 years. Each time with 2 requests. Cancel the service I did not order and refund me.

      I’m promised this every month, every month I have to call again. Because like clock work 15.98 comes out of my account for Onstar service they’ve agreed I never asked for on an account they cannot find with charges they claim don’t exist. This is ridiculous

  9. Thomas Matrisciano says:

    Please add me

  10. Elvera R Borders says:

    Please add me.

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