This is true, although Turbine has recently changed one little detail: people who were VIP in the past now get a free 4th and 5th bag on new toons they make. All other benefits of past-subscriber only apply to characters logged in to while the subscription was active. This was changed because people were having problem with buying the 6th bag through a certain pack I think (not sure), which is account-bound. Since the 4th and 5th bag aren't, there were accounts with 4th and 5th bag on certain toons but not on other characters. That caused some trouble with buying the 6th bag, so Turbine decided to make 4th and 5th bag free to all past-subscribers, which increases the value of a limited subscription.
Originally Posted by kmcferrin
Not sure what might be the problem here, have you tried submitting a ticket?
Fordil of Landroval, Minstrel officer of The Alliance
Check out my Guide for New Players: https://www.lotro.com/forums/showthread.php?507561-GUIDE-New-to-LOTRO-hints-and-tips