Final answer:
The statement that credit cards should not be placed near permanent magnets is true because the magnet can demagnetize the strip or damage the card's encoded information.
Step-by-step explanation:
The question addresses whether it is true or false that it is not recommended to place credit cards with magnetic strips near permanent magnets. The statement is true. Credit cards use a magnetic strip on the back that encodes the cardholder's information. Exposure to a strong magnetic field, such as that from a permanent magnet, can demagnetize the strip or scramble the encoded information. This can render the card unreadable by swiping through card readers and hence it is advisable to keep magnetic strips away from permanent magnets to avoid any potential damage to the card.