We use a credit card for normal purchases to earn cash back (Discover) and pay the balance in full each month so that we don’t incur finance charges. When I make payments, they apply it to the promotional balance, not my regular charges.

How does that make sense when they guarantee you the promotional balance with NO payments. When I send e-mail from the website, I get very quick responses, but sometimes they do not seem to be related to most of my e-mail, rather a cut and paste response. I have been told a # of times that they apply payments to the lowest interest rate, so they apply to my promotional account, which has no INTEREST rate if paid off within 6 months. Explain that, Sams Club. Sometime I get someone who actually reads my e-mail and does what I ask, but most of the time, I get pre-fabricated answers. What good is an e-mail inquiry system that does that?

These companies wouldn’t be so highly praised or successful if they weren’t doing something right.

After disputing this unfair practice last year, Costco member services finally conceded (after a 45 minute discussion.) that I could cancel and start a new membership. However, they stated it would look “suspicious” on why I had opened and cancelled memberships. I asked them to explain how this would look suspicious. They stated it would appear I was trying to defraud them of membership dues (????!!!). I told them to enter a note explaining why the membership was cancelled. They also offered a ‘One time exception’ to reset the issue date (Only one time?). I called Costco headquarters (Seattle WA), and issued a complaint. The person admitted they receive a large volume of calls regarding this “policy”. Despite this volume of calls, Costco continues this money making “policy”. I doubt my complaint went any further than that telephone conversation.

This year, Costco membership and a manager told me that cancelling a membership and opening a new membership would not work. After pressing the manager, she admitted that I could cancel and open a new account, but it would need to be approved by managers higher than herself.

It is plain and simple: If I purchase a 1 year contract, I expect 1 year of service (not more or less.). If I decide to let my membership lapse and renew several months later, you bet I expect to get what I paid for (1 year of service.).

This is a HUGE money making scam operated by Costco. For the most part, Costco employees are trained to “shutdown” customer complaints and remain unflexible.

Money speaks louder than words. Like another poster stated, tell the manager you WILL take your business elsewhere. Also complain to Costco headquarters in Seattle WA.

Everyone that has encountered this scam needs to post everywhere possible on the internet.

If you don’t believe the this is true, then go to your local Costco and ask them if the expiration date is adjusted if you renew late.