For,, I have an .htaccess file with this in it: (It's a wordpress site)

<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]

I understand that the two %{REQUEST_FILENAME} conditions should cause that redirect to ONLY happen if the requested directory or file DO NOT exist.

The problem I am having is that I created a folder at .../public_html/referrals and a request for is still getting redirected.

What I am doing wrong? Should I look at something else on my server as the possible problem?