Getting calls or letters from debt collectors can be stressful. However, understanding who they are and what rights you have can help you take control of the situation. In this guide, we’ll walk you through everything you need to know about dealing with collection agencies.
What Is Credence Resource Management?
Founded in 2013, Credence Resource Management is a debt collection agency based in Dallas, Texas. Over the past decade, they’ve become one of the more active collection agencies in the United States.
Essentially, they work as a third-party debt collector. This means they buy unpaid debts from original creditors for just a fraction of what’s owed. Once they purchase your debt, they legally have the right to contact you and demand payment.
They collect debts across various industries including healthcare bills, utility payments, telecom services, and banking debts. In fact, they frequently collect on behalf of major companies like AT&T, healthcare providers, and cable companies.
On your credit report, they might appear under different names like “Credence Collections,” “Credence RM,” or “Credence Resource Management AT&T.”
Why Are They Contacting You?
The most common reason is that you have an unpaid bill that was sold to them by the original creditor.
Here’s how it works: when you miss payments on a bill, the original company will try to collect from you first. Then, after several months of failed attempts, they often sell your debt to a collection agency.
They frequently collect debts from:
- Healthcare providers – hospital bills, doctor visits, medical procedures
- Telecom companies – AT&T, Verizon, cable services
- Utility companies – electric, gas, and water bills
- Financial institutions – credit cards and personal loans
Sometimes, there might be a mistake. You could be contacted about a debt that isn’t yours, or the amount might be wrong. That’s why verification is crucial.
How It Affects Your Credit Score
Having a collection agency on your credit report isn’t good news. In fact, it can seriously damage your credit score and financial future.
When a debt collector reports your account to credit bureaus, it shows up as a negative mark. This mark can stay there for up to seven years, significantly lowering your credit score. Consequently, you might face difficulties:
- Getting approved for credit cards or loans
- Qualifying for a mortgage or car financing
- Renting an apartment
- Even landing certain jobs that check credit reports
Furthermore, a lower credit score means higher interest rates on any credit you do get approved for. This costs you thousands of dollars over time.
Your Legal Rights Under Federal Law
Here’s some good news: you have strong legal protections when dealing with debt collectors. The Fair Debt Collection Practices Act (FDCPA) is a federal law enforced by the Consumer Financial Protection Bureau that limits what debt collectors can and cannot do.
Under the FDCPA, debt collectors must follow these rules:
Time restrictions: They can only call you between 8 AM and 9 PM in your time zone.
Workplace boundaries: If you tell them not to contact you at work, they must stop immediately.
Third-party privacy: They cannot tell your friends, family, or neighbors about your debt.
Attorney representation: If you have a lawyer, the debt collector must communicate through your attorney instead of contacting you directly.
No harassment: They cannot threaten you, use profane language, or falsely claim they’ll take your property or have you arrested.
Honest identification: Collection agents must truthfully identify themselves and the company they represent.
If your rights are violated, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) and potentially sue for damages.
How to Verify Your Debt
Before you pay anything, you absolutely must verify that the debt is legitimate and accurate. This step is critical and could save you from paying money you don’t actually owe.
According to CFPB regulations updated in 2021, debt collectors must send you a “Notice of Debt” within five days of first contacting you. This notice should include:
- The amount you allegedly owe
- The name of the original creditor
- An itemization date
- Information about your rights to dispute the debt
- A form you can use to dispute
Once you receive this notice, you have 30 days to request debt validation. Send a debt validation letter via certified mail requesting:
- Documentation proving you owe the debt
- The statute of limitations expiration date for your state
- A copy of the last billing statement from the original creditor
- Proof that they’re licensed to collect debt in your state
If they can’t validate the debt properly, they must stop collection attempts and remove it from your credit report.
How to Dispute the Debt
If you believe the debt is incorrect, not yours, or the amount is wrong, you need to dispute it immediately. Remember, you only have 30 days from receiving the debt notice to file a dispute.
Write a clear dispute letter that includes:
- Your name and contact information
- The account number in question
- A clear statement that you’re disputing the debt
- The specific reason (not my debt, wrong amount, or need additional information)
- A request for debt validation
Send this letter via certified mail with return receipt requested. This gives you proof that your dispute was received.
After you dispute, the collector must:
- Stop collection activities until they provide validation
- Investigate your claim
- Provide documentation proving the debt is valid
- Remove the debt from your credit report if they can’t validate it
Your Options for Resolution
Once you’ve verified that the debt is legitimate, you have several options for resolving it. Each approach has pros and cons.
Full payment: If you can afford it, paying the debt in full is the quickest way to resolve things. However, this won’t automatically remove it from your credit report.
Settlement negotiation: Often, collectors will accept less than the full amount. You might negotiate to pay 40-60% of the debt in exchange for considering it settled.
Pay-for-delete agreement: This is when you negotiate payment in exchange for removing the collection from your credit report entirely. Get this agreement in writing before paying anything.
Payment plan: If you can’t pay in full, ask about setting up monthly payments. This shows good faith and stops further damage to your credit.
Credit repair services: Professional credit repair companies can handle negotiations and disputes on your behalf. While they charge fees, they often achieve better results.
Regardless of which option you choose, always get agreements in writing before sending any money. Never give debt collectors direct access to your bank account.
Conclusion
Arm yourself with knowledge of your rights under the FDCPA. Always start by formally validating the debt—never pay before you verify. From there, strategically choose to dispute, negotiate a settlement, or pursue a pay-for-delete agreement. Taking prompt, informed action is the most effective way to resolve the situation and protect your financial future
Frequently Asked Questions
Credence Resource Management is a legitimate debt collection agency, not a scam. However, according to the Better Business Bureau, they have a B rating with numerous consumer complaints. While they’re legal, their aggressive collection tactics can feel overwhelming to consumers
Ignoring them is generally a bad strategy. The debt won’t disappear, and it will continue damaging your credit score for up to seven years. Additionally, they could potentially sue you for the debt, leading to wage garnishment or bank levies. It’s always better to address the situation head-on.
A collection account can remain on your credit report for up to seven years from the date of your first missed payment with the original creditor. However, the impact on your credit score decreases over time, especially if you’re building positive credit history.
Always verify and validate the debt first before paying anything. Many debts are inaccurate, past the statute of limitations, or even fraudulent. Once you verify the debt is legitimate and accurate, then you can decide whether to pay, negotiate, or seek professional help.