1 . "I can return my car within 3 days of purchase."
This is the granddaddy of all consumer rights that aren't. Many otherwise well-informed attorneys have called asking for the cite to the non-existent "auto sales rescission rule." So prevalent is this belief, that since 1993, the State of California has required a notice on all auto sales contracts which begins with the words: "THERE IS NO COOLING OFF PERIOD."

2. "If the judge orders my ex to pay our credit account, I'm off the hook."
Apparently, many divorce attorneys actually believe this, forgetting that in the case of a joint account where both spouses have signed, the contract rules. If divorce courts wish to make one party responsible for a debt, the unlucky individual should be required to take out a loan, pay off the balance, and provide proof that the account is closed.

3. "My credit report information is confidential."
Although wrongfully obtaining another person's credit report is a serious offense, there are more and more ways that the information can be legally distributed. Recent federal law changes allow corporate affiliates to share a great deal of data, and these days, it's a rare company that is not affiliated with somebody. And consumers must actively "opt out" (using toll-free numbers now found in the fine print of all pre-approved and pre-selected credit offers) to avoid having their names included on lists of individuals whose spending habits meet certain parameters, which are sold to all sorts of merchants and creditors.

4. "If my car stops working, I can stop paying."
While abrogation of the holder in due course doctrine does bestow some rights on consumers in this area, blind adherence to this principle causes severe problems. The nature of automobile credit sales has changed dramatically in the past few years. Dealers rarely hold the "paper" anymore, and the secondary market is no longer limited to new cars, or to the GMACs and Ford Motor Credits of the world. Now, even "buy here, pay here" used car paper can be securitized, the servicing split off and sold, and so on. Stopping payments when the obligation is so far removed from the disabled vehicle and its owner means only one result: a repossession order being faxed to the local tow truck operator.

5. "My creditors can't call me at work."
Individual state laws may vary on this topic, but in general there is mass confusion (including many attorneys) between laws regulating third-party debt collectors (which grant consumers quite powerful rights to terminate all contact), and those rules which apply to the collection practices of creditors collecting their own debts (which contain far fewer restrictions). In most states, creditors can keep calling and writing, days, nights, weekends and holidays, until the debts are repaid. Further, again in contrast to the rights that many consumers insist they have, there are few if any laws requiring creditors to be "reasonable", or to accept whatever payments the consumer thinks he or she can make.

6. "If I don't make it to the hotel, they can't charge my credit card."
In general, cancellation policies are up to each individual establishment. Under the UCC, a merchant has a general responsibility to mitigate damages by trying to re-rent a room, but more often than not, abandoning a reservation made using a credit card will result in some charge being assessed to the account.

7. "It says right here that I've won; it must be true."
So convincing have the fake "prize notifications" become, that even seasoned consumer advocates have trouble throwing away that big envelope with the green star on it. Recently a man drove to a publishing company's headquarters in Florida to pick up his prize from a former late night personality. He reported that when he got there, there were other consumers outside on the sidewalk, but that an armed guard blocked the lobby of the publishing company. Apparently, the consumer was not the first one who had tried to claim his prize in person.

8a. "You can't repossess my car; it's on private property."
Again, state laws differ, but for those states which follow federal models, the general rule is that repossession cannot occur if it involves force, a breach of the peace, or entry into a dwelling. If a vehicle is in a driveway, or even in an unattached, unlocked garage, it may be fair game.

8b. "The creditor told me that a voluntary repossession would look better on my credit report."
Credit reports do not make a distinction between a case in which the vehicle is driven in by the consumer versus when it's towed in by a wrecker service. The report reads the same: "Repossession".

9. "An auto lease is like a rental: If I have problems with the car or problems paying, I can just bring it back."
A traditional lease is a contract requiring a stream of payments for the duration of the term, and early termination or default exposes the consumer to the vagaries of an auction sale and to the inevitable deficiency balance resulting from the difference between the sale proceeds and what the leasing company supposedly would have recovered in profits had the lease gone to term.

10. "If I lose my credit cards, I'm liable for purchases."
This myth is perpetuated by companies which benefit from its existence; namely, the "credit card protection" companies which sell a type of insurance against charges resulting from unauthorized use. Such protection is already provided by federal (and most states') laws, which limit exposure to the lesser of charges made, or $50. In most cases national credit card companies require that consumers pay the $50 in instances of genuine fraud, so long as the consumer makes a good faith effort to notify the lender of the event and cooperates with the issuer in tracking down the wrongdoer. It may be a good idea to keep a photocopy of all your credit cards, front and back, kept in a locked desk drawer, which can be referred to in case of a lost or stolen wallet or purse.