What Is Credence Resource Management Really About?

You checked your credit report and spotted an unfamiliar name: Credence Resource Management. Your credit score dropped, collection calls started flooding in, and you have no idea what this company even does.

Credence Resource Management isn’t some mysterious entity. It’s a third-party debt collection agency based in Dallas, Texas, that buys unpaid debts from healthcare providers, telecom companies, utilities, and credit card issuers. When your original creditor gives up on collecting an overdue account, they often sell it to companies like Credence for pennies on the dollar.

Understanding what Credence Resource Management really does, and more importantly, what rights you have when dealing with them, can make the difference between paying debts you don’t actually owe and protecting your credit score effectively.

What Credence Resource Management Actually Does

Credence Resource Management operates as both a first-party and third-party accounts receivable management company. This means they either collect debts on behalf of the original creditor (first-party) or purchase the debt outright and collect for themselves (third-party). The company was founded in Nevada in 2013 and moved its headquarters to Dallas, Texas, with additional offices in San Jose, California, Bellevue, Washington, and international locations in Pune and Mumbai, India.​

The company specializes in collecting debts across multiple industries. Their primary focus areas include healthcare accounts, telecommunications services (especially AT&T accounts), utility bills, retail debts, and financial services. They’ve built their business model around what they call “compliant business solutions” that combine technology with traditional collection strategies.

Credence purchases consumer debt at significantly reduced rates, often just 4-10% of the original balance owed. This business model means they profit even when accepting partial payments from consumers. The company has been operating since 2013 and became BBB accredited in July 2017, though it currently holds over 950 complaints with the Consumer Financial Protection Bureau.​

Collection Techniques They Use

Credence employs multiple collection strategies to reach consumers with outstanding debts. They use automated dialing systems, commonly known as “robocalls,” to contact debtors multiple times per day. These systems can generate dozens of calls to the same number in attempts to establish contact.

Skip-tracing technology helps Credence locate consumers who’ve moved or changed contact information. They purchase updated consumer information databases and “scrub” data to find current phone numbers, verify if numbers are mobile or landline, and discover any insurance coverage that might apply to healthcare debts. This aggressive data collection allows them to track consumers across address changes and phone number updates.

Traditional collection letters remain a core part of their strategy. These letters typically arrive within five days of Credence acquiring your debt and include details about the amount owed, the original creditor, and your rights to dispute the debt under the Fair Debt Collection Practices Act. The company also reports debts to all three major credit bureaus, Experian, Equifax, and TransUnion, which directly impacts your credit score.

Industries and Companies They Collect For

Credence Resource Management primarily targets five major industry sectors for debt collection. Healthcare accounts represent a significant portion of their business, including unpaid medical bills, hospital charges, and insurance balances. They also provide specialized services for qualifying healthcare accounts for Medicare and Medicaid payment programs.

Telecommunications debts, especially from AT&T wireless and internet services, appear frequently on consumer credit reports from Credence. These accounts typically involve unpaid monthly service charges, early termination fees, or equipment charges. Utility companies, including electric, gas, and water providers, use Credence to collect overdue bills that went unpaid for 90-180 days.

The financial services sector represents another major client base. Credit card companies, personal loan providers, and retail financing accounts get referred to Credence after internal collection efforts fail. Retail debts from major chains and online retailers also end up in Credence’s collection portfolio when consumers leave balances unpaid.

Why Your Debt Ended Up With Them

Your original creditor likely sold your account to Credence after you missed payments for 90-180 days. During this period, the original creditor attempted internal collections through phone calls, emails, and letters. When these efforts failed, they “charged off” the account, writing it off as a loss on their books.

Once charged off, creditors have two options: continue attempting collection in-house or sell the debt to a third-party agency like Credence. Selling provides immediate cash recovery, even if it’s only a fraction of the original amount owed. Credence purchases these debt portfolios in bulk at discounted rates and then attempts to collect the full balance from consumers.

The sale happens without your explicit permission because debt obligations transfer with account ownership under most consumer credit agreements. However, debt collectors must follow strict federal regulations about how they notify you of this transfer and validate the debt’s legitimacy.

Your Legal Rights When Dealing With Credence

The Fair Debt Collection Practices Act (FDCPA) provides comprehensive protection against abusive collection practices. This federal law explicitly prohibits debt collectors from harassing you, lying about debt amounts, threatening violence, using profane language, or calling repeatedly to annoy you. Credence must comply with these regulations or face legal consequences.​

You have the absolute right to request debt validation within 30 days of receiving their initial collection notice. Send a written debt validation letter asking Credence to prove you actually owe the debt, verify the amount is correct, and confirm they have legal authority to collect it. During this 30-day validation period, Credence must stop all collection activities until they provide proper documentation.

The Fair Credit Reporting Act (FCRA) governs how Credence reports your debt to credit bureaus. They must report information accurately, mark disputed debts as “disputed” on your credit report, and conduct reasonable investigations when you challenge the debt’s accuracy. If they fail these obligations, you have grounds to sue for damages.

What Credence Cannot Legally Do?

Credence cannot contact your employer, family members, or friends about your debt except to obtain your current contact information. They’re prohibited from discussing specific debt details with anyone other than you, your spouse, or your attorney. Revealing your debt to third parties violates federal privacy protections.

They cannot threaten legal action they don’t intend to take or misrepresent the amount you owe. Inflating balances with fake fees, claiming you’ll face arrest, or stating they’re attorneys when they’re not all constitute illegal practices. Court documents show Credence has faced multiple lawsuits for FDCPA violations involving repeated calling and failure to honor dispute requests.​

Credence must stop contacting you completely if you send a written cease-and-desist letter. After receiving this letter, they can only contact you to confirm they’ve stopped collection efforts or to notify you of specific actions like filing a lawsuit. However, sending this letter doesn’t eliminate the debt, it only stops the communication.

How to Respond When Credence Contacts You

Start by verifying the debt’s legitimacy before making any payment. Request written validation showing the original creditor’s name, the account number, the original balance, and a breakdown of how they calculated the current amount owed. Send this request via certified mail with return receipt within 30 days of their first contact to maximize your legal protections.

Check your credit reports from all three bureaus to see how Credence is reporting the account. Look for inaccuracies in the balance, dates, or account status. Even small errors give you grounds to dispute the debt and potentially have it removed from your credit report entirely.

Document every interaction with Credence meticulously. Keep detailed records including:

• Date and time of each phone call or letter
• Names of representatives you spoke with
• Specific statements made during conversations
• Copies of all written correspondence
• Screenshots of voicemails or text messages
• Notes about how many times they called per day

This documentation becomes critical evidence if you need to file a complaint or pursue legal action for FDCPA violations.

Negotiating Payment Options

If the debt is legitimate and you can afford to pay, negotiation often reduces what you actually owe. Credence purchased your debt for a fraction of its face value, so accepting 40-60% of the original balance still profits them. Start negotiations by offering 30% of the total balance and work up from there.

Request a “pay for delete” agreement in writing before sending any payment. This arrangement requires Credence to remove the collection account from your credit reports entirely once you pay the agreed amount. Get this commitment documented through email or letter, verbal promises hold no legal weight.

Never provide bank account or debit card information over the phone. Make payments through certified checks or money orders that create paper trails. This protects you from unauthorized withdrawals and provides proof of payment if disputes arise later about whether you paid.

Filing Complaints and Seeking Legal Help

The Consumer Financial Protection Bureau (CFPB) handles complaints about debt collectors like Credence. File complaints online at consumerfinance.gov/complaint documenting specific violations of the FDCPA or FCRA. The CFPB forwards your complaint to Credence, requiring them to investigate and respond within 15 days.

The Better Business Bureau provides another avenue for complaints, though it lacks enforcement authority. Credence currently holds over 308 BBB complaints related to incorrect debt reporting, continued collection after disputes, and failure to validate debts properly. While BBB complaints don’t directly resolve issues, they create public records that support legal cases.​

Consumer protection attorneys often handle FDCPA violation cases on contingency, meaning no upfront fees. If Credence violated federal collection laws, you can sue for statutory damages up to $1,000 plus actual damages, attorney fees, and court costs. Multiple documented violations of calling repeatedly, contacting after cease-and-desist requests, or reporting disputed debts without investigation strengthen your case significantly.