Bloomingdales credit protection scam

I recently opened a Bloomingdales credit card to receive an extra 15% off a purchase. I didn't notice the $1.63 fee on my bill until I saw the welcome to their credit protection plan letter. The sales clerk did not tell me I was buying a credit protection plan. I've cancelled the plan (1 phone call) and tried to get an immediate refund (another phone call). I was told I need to pay the $1.63 fee now to avoid late fees and that in a couple of months, it would be credited back. What the hell am I supposed to do with a $1.63 credit? I've cancelled my card, I'm paying the fee, and I'll never shop there again!

Can they spell "customer service"?