I have the same predicament of not being able to use my playlists. And I find your response odd because I've had the free version of the app for one to two years and have always been able to make and use playlists up until now. And no, I'm not talking about the stations, I know the difference.
Also quick add on, what I meant is that I could use the playlists after listening to an add. Managed to fix the problem too. Just reinstalled the app