Unhappy SiriusXM Customers Can Get Refunds

SiriusXM Radio customers who had problems cancelling their contracts, got charged unauthorized fees or saw their rates jump unexpectedly will have an opportunity to get their money back, Attorney General Roy Cooper announced Thursday.

“Consumers who enter into a contract with a business expect to be treated fairly,” Cooper said. “Sticking consumers with extra fees and ignoring their attempts to cancel is a bad way to do business.”

The consumer refunds are part of a multistate settlement in which Sirius XM will also pay a combined $3.8 million to North Carolina and 43 other states and the District of Columbia to resolve allegations that the satellite radio company’s advertising and billing practices misled consumers. The $3.8 million recovered through the settlement is separate from the funds that will be used to repay consumers and will be shared among the participating states, including $101,429.41 to North Carolina, according to the AG's office.

The states’ investigation focused on complaints from consumers that Sirius XM made it difficult for them to cancel contracts, misrepresented that contracts would be canceled and not renewed, renewed contracts automatically without consumers’ notice or consent, charged unauthorized fees, raised rates unexpectedly after a low introductory rate, and failed to provide timely refunds.

Consumers in North Carolina who experienced one or more of these problems with Sirius XM at any time since July 28, 2008, are encouraged to file a complaint. Consumers have until May 3, 2015, to file a complaint to be considered for a refund. Anyone who complained previously to either the Attorney General’s Office or Sirius XM should file a new complaint by the deadline in order to be eligible for a refund.

North Carolina consumers can file complaints with Cooper’s Consumer Protection Division online at www.ncdoj.gov or call 1-877-5-NO-SCAM toll-free within the state. Consumers can file a complaint directly with Sirius XM at a www.siriusxm.com/settlementprogram or by mail at PO Box 33059, Detroit, MI 48232-5059.

The settlement will also protect consumers going forward because it requires Sirius XM to make significant changes to its business practices. Specifically, Sirius XM must:

• Clearly disclose all terms and conditions at the point of sale, such as billing frequency, term length, automatic renewal date and cancellation policy.
• Make no misrepresentations about the available plans in advertisements.
• Provide advance notice via mail or email about upcoming automatic renewals for plans lasting longer than six months.
• Revise the cancellation procedures to make it easier for consumers to cancel.
• Prohibit incentives for sales agents based solely on retaining current customers who attempt to cancel.