A possible XM scam
#1
Senior Citizen
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Thread Starter
A possible XM scam
Some of you may recall that I ordered a free radio from Sirius-XM last December with the intent of installing it in my wife’s car. I did have to pay for a 3-month subscription for $47. I later decided not to install the device and never activated the radio. I thought that when the three months was over the issue was closed.
But I just noticed today that I’m being charged an additional $32.21 on my MasterCard statement. I immediately called XM who told me the radio was pre-activated and that I’m on a yearly plan and that was the next scheduled charge. I told them to cancel my subscription and credit my account for the $32.21. They were glad to do that but told me I would now be charged a $75 early termination fee. In other words, this “free” radio is nothing of the kind.
I spoke to the XM supervisor and told her I signed nothing and agreed to nothing more than the three months, and have no intention of paying neither the $32 nor the cancellation fee. She agreed to investigate the situation and get back to me.
It appears to be a clever scam. They give you a free radio but clandestinely hook you for a hidden annual subscription that was not requested, and they tack on an early termination fee if you back out. I have no intention of paying, but in that they have my credit card number there’s no guarantee that I’ll succeed. I’ll let you know how it turns out.
But I just noticed today that I’m being charged an additional $32.21 on my MasterCard statement. I immediately called XM who told me the radio was pre-activated and that I’m on a yearly plan and that was the next scheduled charge. I told them to cancel my subscription and credit my account for the $32.21. They were glad to do that but told me I would now be charged a $75 early termination fee. In other words, this “free” radio is nothing of the kind.
I spoke to the XM supervisor and told her I signed nothing and agreed to nothing more than the three months, and have no intention of paying neither the $32 nor the cancellation fee. She agreed to investigate the situation and get back to me.
It appears to be a clever scam. They give you a free radio but clandestinely hook you for a hidden annual subscription that was not requested, and they tack on an early termination fee if you back out. I have no intention of paying, but in that they have my credit card number there’s no guarantee that I’ll succeed. I’ll let you know how it turns out.
#2
They have been scamming folks since day 1. It's good you caught it early. I was being billed for a second radio and service (that I never even had) at my business. I didn't catch it for months, after I'd sold the business. They would not issue a credit for a service I never ordered nor received. It was past 90 days to dispute the charge with my credit card company. I got screwed out of a few hundred dollars.
Also beware of the scam where they offer you a rate $20 for 5 months to come back to them after you've discontinued their service. Even if you specifically request the 5 months offer only and NOT elect to auto renew, they will auto renew at a much higher monthly rate.
They are scumbags. I hope they go out of business and someone takes over with a better business model.
Also beware of the scam where they offer you a rate $20 for 5 months to come back to them after you've discontinued their service. Even if you specifically request the 5 months offer only and NOT elect to auto renew, they will auto renew at a much higher monthly rate.
They are scumbags. I hope they go out of business and someone takes over with a better business model.
#7
Thanks for the heads up on their sneaky methods of scamming the customers. I bought a two year subscription in March of 2010 after my free 3 month subscription just about ran out, so I'll be watching my credit card statements more closely towards the end of the two years so they don't slide a fast one on me. Again thanks for the info.
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#8
#9
Registered User
Also beware of the scam where they offer you a rate $20 for 5 months to come back to them after you've discontinued their service. Even if you specifically request the 5 months offer only and NOT elect to auto renew, they will auto renew at a much higher monthly rate.
#10
carz,
they will not let you cancel in 5 months. if you try to deactivate the radio before hitting your 1 year mark, they will charge you $75 early termination fee. i JUST went through this a couple of days ago with them. spent about an hour on the phone with multiple supervisors. i had the same 5 months for $20 plan and was thinking exactly what you thought... i'll just cancel in 5 months. but they say if the radio is activated less than a year, there will be a $75 charge. they are thieves.
they will not let you cancel in 5 months. if you try to deactivate the radio before hitting your 1 year mark, they will charge you $75 early termination fee. i JUST went through this a couple of days ago with them. spent about an hour on the phone with multiple supervisors. i had the same 5 months for $20 plan and was thinking exactly what you thought... i'll just cancel in 5 months. but they say if the radio is activated less than a year, there will be a $75 charge. they are thieves.
#12
Senior Citizen
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Thread Starter
Well, I’m not a lawyer, but I feel I’m on firm ground here. When I bought the 3 months over the phone, it’s now a “he said-they said” regarding activation. Certainly, unlike cell phone contracts, I signed and agreed to nothing beyond the three month activation, nor would I have knowing that I was buying activation for a full year on a “free” radio.
Furthermore, in the user guide for the radio (which I just re-read) there’s a chapter on activation. All it says is that after installing the radio either go on-line or call them to activate. There’s no mention that the device is “pre-activated” like they suggested to me yesterday.
If my credit card people (MasterCard) do not take my side, I just can’t refuse to pay, lest my credit rating, which I hold in high esteem, would suffer.
Furthermore, in the user guide for the radio (which I just re-read) there’s a chapter on activation. All it says is that after installing the radio either go on-line or call them to activate. There’s no mention that the device is “pre-activated” like they suggested to me yesterday.
If my credit card people (MasterCard) do not take my side, I just can’t refuse to pay, lest my credit rating, which I hold in high esteem, would suffer.
#15
Registered User
I went with 1 year for $77 after my trial expired and told them I didn't want auto rebilling. I checked it the day before my 1 year was up and sure enough it was set to auto rebill at something like $20 a month. After being transferred around countless times, I was finally able to get another year at $77. How do these people sleep at night?