Can SiriusXM Radio damage my credit rating? (2024)

My car has a SiriusXM radio and I subscribed to the service for about a year. A few months ago, my credit card number changed (Sirius had been charging this card under the prior number.) I didn't update Sirius with this new number and my service eventually stopped. I had been intending to cancel anyway as I had lost interest in the service, so I ignored the few letters I got in the mail regarding my Sirius bill.

Today, I received a call from Sirius about the fact that the fact that the charges were being rejected by my credit card company. I explained that I got a new credit card number and I am also no longer interested in the service. They told me that I have a balance due. They told me that I had service for the last 30 days that I had not paid for (about $20.) Essentially, they left my radio service on for 30 days even though I had not paid for it.

I don't doubt this is true and therefore they are correct - I did have access to the service for those 30 days and have not paid for that access. However, I am wondering what the consequences will be if I don't pay? First, I don't ever want the service again - I stream music on my smartphone now. Second, can they send my bill to a collection agency? Can this non-payment actually hit my credit report and hurt my credit rating?

I think their fine print says there is an automatic renewal (at the then current rate) unless you cancel the service. I don't use them for that reason plus there is no need for their service. For $30, I would not gamble with my credit record. Pay the bill and write it off as a lesson of a sort.

investor

Just pay the bill.

A year after cancelling my landline service with Verizon in the early 2000s prior to a move, I found out about a $0.23 "unpaid bill" on my credit report as a result of a fee added after I paid my last bill. I paid it (by check, with a $0.25 postage stamp), but they refused to remove it from my credit report and it stayed on for 7 years. I will never do business with Verizon again.

o

If you didn't explicitly tell them you want the service canceled and they didn't explicitly acknowledge the cancelation I wouldn't be surprised if they continue to bill you for additional months of service.

I've had SiriusXM at various times in the past but stopped it a couple of years ago when I learned to appreciate other internet radio alternatives (I primarily used it at home). It can still be a great service if you're on the road a lot and there are insufficient radio alternatives where you're at.

I found the only way to "win" the game with SiriusXM was to sign-up for a promotional rate for 6 months or a year (depending on what was available) and track the expiration date on my calendar. When I was two weeks away from expiration I would send a registered certified mail written request for cancelation to the address shown on their terms and conditions. I'd allow a gap of two to four weeks before I'd sign up for a new promotional rate. The recent promotional rates have been in the neighborhood of $30 to $120 for 5 to 12 months depending on the promotion, considerably less then the normal 12 months renewal of probably almost $200 by now. For me the hassle of a certified letter was easier then calling them up to cancel.

There's a website for SiriusXM users called www.xmfan.com, I'd advised anyone using SiriusXM to check it out for alternatives to automatic subscription renewals.

What they said.

I loved XM Radio, but when they merged with Sirius it didn't take me long to try to exit. But they sure didn't make exiting easy.

Pay the bill. It is $20 for a service you used. Just because you were considering cancelling anyways doesn't mean you shouldn't pay.

Besides, it isn't worth the credit hit. I had National Grid (electric and gas supplier) hit me with a collections notice when I moved from one apartment to the next. Apparently the final bill can't be paid by auto-pay and I didn't know because they were sending the mail to my previous address and it didn't get forwarded the first time for whatever reason. I'm just about 7 years in, so it is a mark on my credit and doesn't really affect my score, but I'll be happy when it finally drops off.

cheese_breath wrote:Why would you even think about not paying a bill you admit you owe?

Well, see I never technically "used" the service. I haven't tuned to a satellite station in months. It is very different than many other bills. For example, with electricity and gas, there are quantifiable and finite entities that you have consumed. This is not the case with satellite radio.

Satellite radio is just some radio waves bouncing around the planet. It doesn't cost Sirius anything for me receive that signal. This is not a 2-way communication system where I occupy bandwidth like a cell-phone service. In fact, there is not even a physical infrastructure to my radio that Sirius has to maintain - like for example a cable company. Me having that month of potential service cost Sirius nothing - I have consumed nothing.

However, you are right. I did enter into a contract and I rightfully should pay (and most likely will.) I'm just wondering if Sirius would even bother going after such a small amount of money.

This thread should be locked. I will help by saying some folks need to [(removed) --admin LadyGeek] honor contracts that they have entered into. They should also cancel the contracts in a timely manner, so that the other party to the contract doesn't have to read their mind and guess what they are up to. [OT comment removed by admin LadyGeek]

Yes, SiriusXM Radio can damage your credit rating simply by reporting your failure to pay. Yes, they can send the bill to a collection agency, too.

SiriusXM is one of the sleaziest consumer companies out there.
I had refunds owed for reducing my service plan and was told it was "in process" for months until I filed a BBB complaint - then it arrived immediately.
I cancelled all service with email confirmation of cancellation, only to find out it was "uncancelled" by them and huge charges were made on my credit card.

I don't doubt they will do anything to extract more money from you and I would not be surprised if your service is reactivated when you provide them with a new working credit card number.

mac_guy wrote:

cheese_breath wrote:Why would you even think about not paying a bill you admit you owe?

Well, see I never technically "used" the service. I haven't tuned to a satellite station in months. It is very different than many other bills. For example, with electricity and gas, there are quantifiable and finite entities that you have consumed. This is not the case with satellite radio....

I never technically "used" any of my insurances last month either. Didn't go to the doctor. Didn't have an auto accident. House didn't burn down. And when I go on vacation I don't technically "use" my cable TV service either. But they were all instantly available to me if I wanted or needed to use them, just like your satellite radio.

You'd think a post by Mac and Cheese (above) would express more agreement

I have to say that, while I've never subscribed other than the free year trial subscription that came with cars, they are a persistent and bothersome company. They try to get you to sign up and seemingly won't take no for an answer. The most recent caller I became testy with, since I've asked repeatedly not to be called, and as I said, "if I didn't turn it on when it was free, why would I want to pay for it?"

I lied. I did turn it on once, to listen to Bloomberg, and the sound quality was horrible, something like a bad phone call overseas using VOIP.

123 wrote:I found the only way to "win" the game with SiriusXM was to sign-up for a promotional rate for 6 months or a year (depending on what was available) and track the expiration date on my calendar. When I was two weeks away from expiration I would send a registered certified mail written request for cancelation to the address shown on their terms and conditions. I'd allow a gap of two to four weeks before I'd sign up for a new promotional rate. The recent promotional rates have been in the neighborhood of $30 to $120 for 5 to 12 months depending on the promotion, considerably less then the normal 12 months renewal of probably almost $200 by now. For me the hassle of a certified letter was easier then calling them up to cancel.

This is exactly how you play the game of getting the best rate with them. I've probably done it 6 times, though I usually call to cancel instead of sending a certified letter. You will never get good renewal rates while your subscription is still active.

mac_guy wrote:Well, see I never technically "used" the service. I haven't tuned to a satellite station in months.

Irrelevant. Pay your debt.

I wouldn't pay it. SiriusXM has an exploitative subscription renewal model, and I've had no qualms about putting safeguards in place to protect myself against their business practices.

We had an initial subscription with our 2012 Honda Odyssey. After it expired, I called and signed up at a reasonable rate and paid with a prepaid Amex onto which I put just enough money for the subscription. Their "renewals," though, are at a much higher rate than the initial subscriptions, so when the renewal fails--intentionally--they call and I either tell them we want to cancel or negotiate myself back into a discounted plan. We've gone on and off a few times in the last 3 years, never paying anywhere close to full price. We really don't use the service much in town, but it is nice for road trips.

This is, in fact, the entire reason I got the prepaid Amex. I use it for signing up for trial subscriptions and automatically renewing subscriptions when I don't trust the company with a real credit card number. It takes 24 hours to ACH money to it for use. The rest of the time, it has ~$10 on it.

Discussions of dishonest behavior or bypassing the law are totally unacceptable. The OP has an obligation to pay the charges. This thread has run its course and is locked.

Here is the SiriusXM Customer Agreement.