Credit Card Rate Scams: Don’t Fall for Robocalls, FTC Says

Consumers are getting “inundated” with so-called robocalls – pre-recorded sales pitches – from firms claiming they can reduce your credit card interest rates for a fee, said the Federal Trade Commission.

Don’t fall for it, the federal agency warns. As with any advance-fee service, a great deal of caution and skepticism is warranted.

The FTC is reminding consumers that they have as much clout with a credit card company as any third-party firm. The agency urges consumers to avoid paying middlemen and deal with the companies directly.

The companies behind the robocalls make lots of promises on the premise that they have special relationships with the credit card companies. They claim the reduce rate will save you thousands and help you pay off your card debt “three to five times faster.” Some even offer money-back guarantees.

“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,” the agency said.

For more helpful information, see the FTC’s alert page on interest rate reduction scams.

Here’s the FTC’s list of Do’s and Don’ts: 

• Don’t give out your credit card information. Once a scammer has your data, they can charge your credit card for their own purchases or sell the information to other scammers.
• Don’t share other personal financial or sensitive information like your bank account or Social Security numbers. Scam artists often ask for this information during an unsolicited sales pitch, and then use it to commit other frauds against you.
• Be skeptical of any unsolicited sales calls that are prerecorded, especially if your phone number is on the National Do Not Call Registry. You shouldn’t get recorded sales pitches unless you have specifically agreed to accept such calls, with a few exceptions. See New Rules for Robocalls at ftc.gov/phonefraud.
• If your number is on the National Do Not Call Registry, a telemarketer may call you only if you have agreed to accept calls from the company the salesperson works for, if you have bought something from the company within the last 18 months, or if you have asked the company for information within the last three months.
• 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.