Don’t be tempted by automated phone calls offering to reduce interest rates on your credit cards to as low as 1.5%. This deal sounds too good to be true, and it is. At least one of the companies making offers like this in our area is Financial Freedom Credit Counseling, which has been given an F rating (on a scale of A+ to F) by the BBB of Southeast Florida and the Caribbean.
The FTC says that the companies behind robocalls like this can't do anything for you that you can't do for yourself — for free. You have just as much clout with your credit card issuer as these companies, and you are just as likely to get turned down for a rate reduction regardless of their promises or supposed efforts to negotiate on your behalf. Indeed, FTC investigators found that people who pay for these services don't get the touted interest rate reductions, don't save the promised amounts, don't pay off their credit card debt three to five times faster, and struggle to get refunds. Furthermore, amendments to the FTC's Telemarketing Sales Rule prohibit companies that offer rate reduction scams on the phone from charging a fee before they settle or reduce your debt.
The BBB offers the following additional advice for consumers who receive robocalls from companies offering to lower their interest rate:
- Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer. Always research the company first by reviewing its Business Review at bbb.org.
- When considering any company offering any type of financial assistance, insist on getting a contract in which all terms and conditions are clearly explained before signing up or providing credit card or other payment information.
- To report violations of the National Do Not Call Registry or to register your phone number, visit DoNotCall.gov or call 1-888-382-1222.
