It is definately an old wives tale...cha has no affect on fear at all. I heard it directly from the devs mouth at one of the fan faire magic panel discussions. Also, for a while on live i had so many negative cha items (hand of the reaper, harvester etc) that my cha was actually below zero..like negative 7 or something, and there was no noticeable difference from that gear to any other set of gear I ever wore.
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