Dealing with Credence Resource Management Debt Collectors: A Comprehensive Guide
What is Credence Resource Management?
Credence Resource Management is a debt collection agency; they buy unpaid debts from creditors and then try to collect on those debts. If you’ve received calls, letters, or other communications from Credence Resource Management – it means they now own your debt and are pursuing you for payment.Debt collectors like Credence can be relentless; they‘ll call incessantly, send threatening letters, and may even take legal action against you. It‘s an incredibly stressful situation – but you have rights under the Fair Debt Collection Practices Act (FDCPA). This guide will walk you through dealing with Credence, understanding your rights, and getting debt relief.
Your Rights Under the FDCPA
The Fair Debt Collection Practices Act is a federal law that prohibits debt collectors from using abusive, deceptive, or unfair practices when trying to collect a debt. Some key protections it provides:
-- Debt collectors cannot call you before 8am or after 9pm
- They cannot use profane language or threaten violence
- Debt collectors must identify themselves on calls/letters
- You can demand they stop contacting you by sending a cease and desist letter
The FDCPA gives you powerful rights – but Credence Resource Management has faced lawsuits for allegedly violating this law. Knowing your rights is crucial when dealing with them.
Responding to Credence Resource Management
When Credence first contacts you about a debt, you have 30 days to dispute the validity of the debt in writing. Send them a debt validation letter demanding proof that:
- You actually owe the debt
- The amount they’re trying to collect is correct
- Credence Resource Management is the current owner of the debt
Until they provide solid proof, you have no obligation to pay or even communicate with them about the debt. Many debts collected by agencies like Credence are past the statute of limitations or have errors – so validating is critical.If Credence cannot validate, or you have other issues like harassment, you can also send a cease and desist letter telling them to stop all contact. Just be aware – this doesn‘t make the debt go away, it just stops their collections efforts.
Negotiating a Settlement with Credence
If the debt is valid, your best option is often negotiating a lump-sum settlement for less than the full balance. Credence bought your debt for pennies on the dollar, so they‘re motivated to settle if it means recovering something.Never agree to pay the full amount right away. Instead, get them to accept a reasonable settlement by:
-- Negotiating firmly but politely
- Asking for a significant reduction, like 25% of the balance
- Requesting removal of the debt from your credit report as a condition
- Getting any settlement agreement in writing before paying
You can negotiate on your own or hire a debt settlement company to handle it – but having leverage like the ability to pay a lump sum is key. Credence wants to recover as much as possible with minimal effort.
Dealing with Lawsuits from Credence
If negotiations fail, Credence may decide to sue you for the debt. This is one of their biggest leverage points, as a court judgment can lead to wage garnishment, bank account levies, property liens, and more.If you’re sued, do NOT ignore it. That will result in an automatic judgment against you. Instead, respond by the deadline and:
- Request validation of the debt again
- Raise any violations of the FDCPA as a defense
- Look into bankruptcy if you can’t afford to pay
- Consider hiring an attorney to defend you
Credence Resource Management files thousands of lawsuits per year, but many are dismissed if the consumer responds with a vigorous defense. Don’t just roll over – fight back using all legal means available.
Debt Settlement Programs and Bankruptcy
For overwhelming debt burdens, more comprehensive debt relief options like settlement programs or bankruptcy may be needed. Debt settlement companies work to negotiate lump-sum settlements on all your debts for a fraction of what’s owed.Bankruptcy is a legal process that can discharge many types of debts entirely. It has a major negative impact on your credit, but provides a fresh start if you’re being crushed by debt collectors.Both options should be carefully considered with a qualified debt relief agency or bankruptcy attorney. They can stop harassment from Credence and resolve your debts for good.
Rebuilding Your Credit After Credence
Whether you settle, file bankruptcy, or simply wait out the statute of limitations – your credit will take a hit from Credence’s collections efforts. But there are steps you can take to start rebuilding:
-- Get a free annual credit report and dispute any incorrect negative items
- Become an authorized user on someone else’s good credit card
- Apply for a secured credit card after improving your credit score
- Live frugally and pay all bills on time to build positive payment history
Over time, the negative impact of Credence’s collections on your credit score will fade if you establish a new track record of responsible credit behavior.