It All Makes Sense Now

I rarely renew my CostCo card on time. Prior to having my wife in my life, I went about once a year, sometimes twice, and filled up on goods and then didn't go again for months at a time. I often complained to my mother and friends that it seemed like I was constantly renewing my CostCo card and only getting a short amount of use out of it before needing to renew again.

Well, today I got an email about a class-action lawsuit filled against CostCo for all those who renewed their membership between March 1, 2001 and March 31, 2009. It seems that CostCo always made your renewal retroactive to the original renewal date, regardless of when you renewed it. So, for example, let's say your renewal date was April 1. You went in and paid for a twelve month renewal on June 1 (two months after your renewal date). Although you paid for 12 months, your next renewal would come up on April 1 again... 10 months later.

The person who brought the class-action sued because she felt she had paid for 12 months and should get twelve months of membership out of it. I would say she was right, and a judge ruled in her favor against CostCo's renewal policy.

I complained a few years ago to my mom about this; my renewal date was something like October or November. One year I didn't need CostCo so I let it slide until around August. Paid for my membership, went to CostCo and used it, then had to go back around end of November-- and was told I had to renew. I argued with the lady that I had just renewed it in August. I even stopped her line cold (and pissed off a few people in line behind me) and asked to see the manager. I explained the same thing. I got absolutely nowhere. Basically I was offered the choice of adding another almost $50 onto my bill and leave with my goods, or leave without paying anything and without all my goods. I wound up paying and taking my stuff and going, but I sent an angry email to CostCo about it. However, nothing indicated to me that I was paying for the previous 9 months in which I had not used my membership when I had renewed in August.

I see now I should have been more diligent about following up on this. It seems my ranting was right yet again -- I just didn't know why.

In case you're wondering, or if you don't believe me about this, here is the bulk of the email I received:

CLASS ACTION SETTLEMENT NOTICE TO: All persons who, from March 1, 2001 through March 31, 2009, purchased and paid for a new 12-month term of Costco membership, including Gold Star (individual), Business, and Executive memberships, after the expiration of their prior annual Coscto memberships. YOU ARE HEREBY NOTIFIED that a proposed class action settlement has been preliminarily approved by the court in Rhonda Dupler v. Costco Wholesale Corporation, No. 06-CV-03141 (JFB) (ETB) (United States District Court, Eastern District of New York). The lawsuit challenges Costco’s practice of deeming the 12-month term of memberships that are renewed after their expiration as having commenced on the expiration date, rather than on the date they are renewed. The lawsuit alleges that this practice is unlawful and deprives Costco members of a portion of the membership period for which they paid a renewal fee. Costco denies all claims and liability stated in the lawsuit. If, at any time between March 1, 2001 and March 31, 2009, you renewed your Costco membership after the passage of its expiration date, your rights may be affected by the settlement of this lawsuit. For further information regarding the settlement and your rights, including information on how to exclude yourself from the Settlement Class or object to the terms of the settlement agreement, please visit the website http://www.costco.com/renewalsettlement.pdf. If you would like to receive a printed copy of the settlement information available on the website, please send a written request for these materials to REQUEST FOR NOTICE, P.O. Box 34682, Seattle, WA 98124 in sufficient time to be received by June 12, 2009. PLEASE DO NOT CONTACT THE COURT OR THE CLERK’S OFFICE.