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Debit can be useful. Por ejemplo at the shady taquiera where the credit card machine is always broken. Run across the street the bank and use the debit card to get cash. Of course I have one of those credit / debit cards and always use credit if given a choice. Then in the event I get screwed I have a fallback.
Your bank probably sent out some insert full of tiny print saying they were allowed to do that. It doesn't make it right. Sounds like the lady knows you're mad and is just trying to deflect you until your temper cools and you forget. Next time you call say (very firmly) if the situation is not resolved to your satisfaction you'll switch banks. That will get their attention.
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