Don't answer calls offering to lower your credit card interest rate, FTC says

If someone calls out of the blue promising to lower your credit card interest rate or erase part of your debt, a new warning from the Federal Trade Commission says there's a good chance it's a scam.

What's worse, these debt relief scams often prey on people already struggling to make ends meet.

Bertha Irby of Yeadon, Delaware County, contacted In Your Corner after receiving an unsolicited call offering credit card debt relief.

Irby said she was immediately skeptical when she answered.

"They were going to help me eliminate some of the credit card debt that I had," Irby said.

The scammer told Irby he could get some of her credit card balances removed and already had detailed personal information.

"He also said that 'We have your Social Security number,'" Irby said. "I thought he'd have the last four digits. He had my entire Social Security number, and that's the thing that really unnerved me."

Irby said she was careful not to confirm anything and handed the phone to her daughter, who hung up after a few minutes. 

The FTC warns that unsolicited offers for debt relief or to lower your credit card interest rate are almost always scams. Fraudsters often use stolen data, like account balances, addresses or Social Security numbers, to appear legitimate.

Thomas Nitzsche of Money Management International, a nonprofit credit counseling agency, said those surprise calls should immediately raise red flags.

"If you just get a call out of the blue, that's your first red flag," Nitzsche said. "The second red flag would be if they ask for any money up front, which is an illegal practice. In the debt relief space, you cannot charge upfront fees before providing any services."

Nitzsche said scams like these can be especially damaging for people already dealing with financial stress. He added that consumers often don't need to pay anyone to lower their credit card interest rate.

"Most consumers are successful in getting their interest rate lowered on their own," he said. "It's just a matter of having a conversation with your creditor and explaining your situation."

For those seeking legitimate help with debt, experts recommend nonprofit financial counseling agencies. Consumers should check that an organization is a member of the National Foundation for Credit Counseling or the Financial Counseling Association of America.

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