SiriusXM Settles Over Automatic Renewal – Pays $3.8 million
File this in the category of “headache gone”. SiriusXM has agreed to settle an action by several Attorney General’s to refund about $3.8 million dollars to consumers who’s service was automatically renewed but undesired. As part of the settlement, Sirius XM has also agreed to make several changes to its business, including improving its cancellation process and sending notices before automatic renewals. Sirius XM said Friday in a statement that these changes have already been made. Customers who may have been unfairly charged between July 28, 2008, and Dec. 4, 2014, can apply for a refund from their state’s attorney general office or from SiriusXM.
From an investment perspective, the news carried a slight impact on stock price upon announcement. However, I expect that the fundamental business has not been impacted, and the size of the settlement quite small. further, if the customer service perception improves, it can only be considered as a good thing. This action will solve one legal headache that has been hovering over the company. On Monday, the equity should return to more normal ranges, and perhaps even begin to build upon a solid foundation in the mid $3’s.
Spencer,
Yur comments are as sober as they could be. The impact on the company performance is zero although the background noise is annoying.
On the negative side, it’s news an investor doesn’t like to hear about your stock.
On the other hand, that so called Accts. Rec. dept of siri’s needs a kick in the butt. I wonder how many subscriptions they have lost because of their bumbling.
I used to sell data systems and I have started 5 businesses in my life time. So, I know how accts. rec. systems are supposed to work.
I have 5 subs and you won’t believe the ridiculous problems I have had with A/R over simple things, like a change of billing address.
In a general perspective, the credit card on file gets abused by lots of companies.
As a former subscriber this was very pleasing. The tactics used by Sirius XM were terrible. I had an expired credit card used to renew one year and after I requested paper invoices in the future and elected not to renew I was threatened with collections. The renewal policy had been changed and apparently it was my responsibility to find that new policy on their web-site without even being advised of a change. I had to pay for four months of service that I never used and continued to be harassed by phone for months after paying them and following the termination process. Tactics like that lost my business forever and my story has been retold countless time to prospective subscribers.
After getting in trouble for automatic renewal, they keep doing it. Jacking prices and hitting cards. I specifically checked “do not renew”, but that didn’t matter. Then they purposefully make cancellation into a totally impossible task. Seems criminal.