Credit Card Company Lies & Misconceptions

Need help dealing with credit card companies. You are not alone. Frankly, there are so many misconceptions about credit cards and collections that most people need help to deal with them. One reason we so strongly recommend national credit counseling services is that they can tell you what is legal and what is not. Still, everyone should understand the basics.

First, credit card companies lie, or rather their operatives do, when you talk to them on the phone. When they say "this call may be recorded" they mean that it will be recorded. So everything you say to someone on the phone is recorded and that data can be used against you. Note that you cannot use that data against them because its their recording. If you talk to a credit card company on the phone, and the operators promises you something, that may or may not be enforceable later. Most of us have had someone working for a credit card company promise us that they would remove a late payment or delete a charge only to find out later they did not follow through and there is no record of the conversation. What this means is, don't talk to them on the phone. Operators who talk to you on the phone are being recorded and they will lose their jobs if they deviate from company policy, and company policy is not designed to help and protect you. It is designed to help and protect the company.

Second, operators on the other end of the phone are in no position to negotiate with you. The things they can offer you are very, very limited. So if you have a big problem, talking to someone you can reach by phone won't work. They can't say "Yes" to things like a lower interest rate or a removing a charge for a missed payment. These days, even "supervisors" you can reach by phone can't help you. So don't try to negotiate with credit card representatives over the phone. You will only become frustrated. They literally can't give you what you want.

Third, credit card companies are not obligated to tell you your rights. They are not obligated to inform you that credit card debt is unsecured and they can't go after your home directly. Credit card collection folks are not obligated to tell you that they can't call you at work or that you can tell them to stop calling altogether. Collection companies who have purchased your debt do not have to tell you that you may not be required to pay their fees and additional charges. They will not reveal that they could (if they wanted) cut your debt to a less than a third of what you owe.

It is important to understand that the operators are on the other end of the phone are just working folks like you and I. They don't mean to be bad people, they probably know less than you just learned about credit card debt. They are just doing their job.

Nevertheless, to protect your rights you need to work with experts who negotiate with credit card companies daily, and the more people they represent the better.