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A class action lawsuit against Uber alleges that the company’s mobile ride sharing app fraudulently charges $5 or $10 “cancellation fees” even when the ride was not cancelled by the consumer.
The complaint states that Uber automatically charges a cancellation fee if the driver is more than 10 minutes late, regardless of the actions of the consumer.
“The nexus of this instant action is Defendant UBER’S deceptive, false, misleading and illusory business policies and practices that were designed and created to dissemble and deflect their unsuspecting consumers for UBER’S true purpose – to generate millions of dollars based on their fraudulent, unearned and unconscionable ‘Cancellation Fees’ that are pure bottom-line profit to the company,” the class action proclaims.
Plaintiff Michael Cordas asserts that Uber charged him a fee for at least three “cancellations,” when he never cancelled any of the transactions.
On July 28, 2015, Cordas says he contracted for a ride in New York City through Uber, but his driver never showed up. Cordas claims that he tried to contact the driver using the information Uber provided, but the cell phone number was not valid. Cordas then allegedly received a notice from Uber that he was being charged $10 for cancelling the transaction, even though Cordas did not cancel the ride.
The second time he was allegedly charged a cancellation fee was on Feb. 1, 2016, in Toronto, Canada. Again, the driver did not show up, Cordas was given a non-working contact number by Uber, and he was charged $5 (Canadian) for cancelling. This time, Cordas claims that he was also fraudulently charged almost $28 by the driver for the ride, even though the driver never provided the service.
Cordas asserts that his third fraudulent cancellation fee was charged by Uber on May 21, 2016, in Irvine, Calif. Like the other two experiences, Cordas was notified he was being charged a cancellation fee while he was still waiting for the Uber driver to arrive and pick him up. This time, the driver did show up and provided the ride, and said that the cancellation charge was an error.
However, the plaintiff claims that the cancellation fee of $5 was never refunded to him by Uber.
The Uber fraudulent cancellation fee class action lawsuit alleges that Uber’s software frequently charges customers false cancellation fees, even when the driver is late by 10 minutes through no fault of the customer. The complaint claims that these fees are very profitable for the company, because a large percentage of them are not challenged by consumers.
The class action notes that this practice is not explained to consumers by Uber, and does not appear in the company’s written cancellation policy.
The complaint contends that Uber’s cancellation fee practices are inherently deceptive and misleading, in violation of consumer protection laws. The class action also accuses Uber of breaching its contracts with customers, fraudulently concealing its conduct, and other violations.
The lawsuit requests certification of a Class of all Uber users who have been charged a cancellation fee by the company. The class action seeks restitution and an injunction stopping Uber from charging these fraudulent cancellation fees.
Cordas is represented by Kristopher P. Badame, Joseph H. Hunter, and Michele E. Pillette of Badame & Associates, APC.
The Uber Fraudulent Cancellation Fee Class Action Lawsuit is Michael Cordas v. Uber Technologies Inc., Case No. 4:16-cv-04065, in the U.S. District Court for the Northern District of California.
UPDATE: On Jan. 5, 2017, a California federal judge ordered the plaintiff who filed a class action lawsuit over Uber’s allegedly unfair ride cancellation fees to arbitrate his dispute.
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11 thoughts onUber Class Action Alleges Fraudulent Cancellation Fees
If what has been done to me by Uber is being done to any of their other customers, which I would bank on, then I would say a good majority of their companies worth is based on fraud. They have not just made a few app errors in erroneously charging customers credit cards, they have tweeked their app to take from you what they want. I watch my charges from everybody/anybody and this company has ripped me off over 25 times and I have disputed to no avail thru an automated dispute system that only allows you to click on the disputes they offer, not what they are doing. And I am not just talking about cancel fees, much bigger, sneaky, unnoticeable tweeking of their app to rob people.
Uber sent three separate cars, each of which diamond don’t even slow down. They claim I took all three rides at almost the same time which is 20 minutes one way with no returns. They fraudulently charged my card for the rides and the cancellation fee. This would mean I cancelled the ride but still took three rides one way.
Spell check= didn’t even.
UPDATE: On Jan. 5, 2017, a California federal judge ordered the plaintiff who filed a class action lawsuit over Uber’s allegedly unfair ride cancellation fees to arbitrate his dispute.
I contacted Uber 8X’s on Nov 19, 2016 for a ride and two of the Caucasian Drivers said they dont drive Black Customers in their cars. I was still charged a fee eventhough their drivers refused me to ride in their car. A short time after both incidents, my credit card company fraud alert department called to inform me that Uber had charged my card approx 8 times in a 1 hour span. I was charged at least 5 cancellation fees.
This happened to me at least five times. Uber is desperately stealing passenger money right now. Chasing after money the company has been unethical.
The same thing Happened to me the First time I used Uber. When the Driver Didn’t show up, I called Him. He didn’t Pick up, and Later I got the $5 Cancelation Fee.
Me to I’m a über driver
When Drivers sit around and wait 10 minutes, after driving to a location, why shouldn’t we the drivers be paid for our time? The ten minutes we waste waiting for a no-show could be filled by other paying passengers instead of wasting our gas and our time. We, the drivers, do receive the cancellation fee. It’s not all “for the profit of Uber” as claimed in the description above.
Yesterday this happened to me with Uber for the very first time. I was standing there and no driver showed up. A message popped up on my screen that the driver cancelled, which is something I’ve never seen before. I rebooked and someone else picked me up less than 3 minutes later.
Got an email stating that I was being charged a late cancellation fee. I emailed and complained, explaining the circumstances, and Uber credited my account. But I can tell you that I am a very respectful passenger as far as the driver’s time and money.
this has happened to me 2 times now. a ride to and from should have been 16$ instead it was 36$