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. Cory Armstrong says:

    Please add us as well. We’ve called and cancelled 3 times and they just keep taking the money out sending us in financial hardship over and over. They are stealing! How has this been going on for so long and nothing has been done? This class action suit is already 3 years underway!!! A person can go to jail for accidentally forgetting to scan an item at the self check out, but a company can steal from an entire nation and nothing is done about it. That sure makes sense!😡

  2. Kent says:

    Please add me too, it’s been years of over charges…. I never even gave them my new card number. I’ve called and canceled multiple times, but still nothing

  3. Barbara Lynaugh says:

    I also am currently going through this. I canceled my service with Onstar in Sept of 2022, I am still being charged for the Wi-Fi portion ($15.00) monthly. I’ve been corresponding with them to no avail. Very frustrating. I would very much like to be apart of this lawsuit.

  4. Cindy says:

    I am having the same problem with OnStar as well. Same as the above. Please contact me so that I can be included with this. I have documentation.

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