Earlier in the summer, Costco credit card holders received new Costco Visa cards to replace their American Express cards. Unfortunately, the transition in June did not go well. Many Costco (NASDAQ:COST) customers threatened to cancel their memberships because of continued issues with the cards.
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On August 19, the retailer hit another snag when consumers began receiving emails stating that their credit card accounts were no longer active. These emails came from Citi, the bank that issues Costco's new Visa cards. In some cases, members stated that the emails weren't even addressed to them. Worse, the emails contained the last four digits of other consumer's account numbers, causing many to wonder if Costco or Citi had been hacked.
According to Citi, the emails should have been sent to cardholders who had let their Costco memberships run out. The email was to inform those consumers that their Visa cards were no longer valid. Due to a system error, some of these emails were sent to current Costco members instead. Citi stressed that no user accounts were hacked or compromised and that the error only affected a small number of consumers.
Despite this reassurance, the system error has not assuaged consumer doubts and has led to many Costco customers venting their frustrations on social media. Costco and Citi continue to assure consumers that they are working to fix all issues related to the new cards.
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This article was provided by our partners at moneytips.com.
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