How to dispute UCC filing that was filed against my business incorrectly

I've already pulled 12 months of bank statements and there's definitely no deposit matching their claimed loan amount. Should I be documenting everything with timestamps and signatures?

Absolutely yes on the documentation. Create a timeline with dates and keep copies of everything. Also check if your state has specific procedures for disputing fraudulent UCC filings - some states have expedited processes for obvious errors.

The secured party is refusing to file a termination and insists the filing is valid. What kind of legal action would be needed here?

You'd likely need to file a lawsuit asking the court to declare the UCC filing invalid and order its termination. This usually falls under commercial law or sometimes fraud depending on the circumstances. Definitely consult with a commercial attorney who handles secured transactions.

Before going the lawsuit route, try sending a formal demand letter to the secured party with your evidence. Sometimes that's enough to get them to file a voluntary UCC-3 termination if they realize their mistake.

That sounds helpful - can it work even when I don't have a loan agreement to compare against? In my case there was never supposed to be any agreement at all.

Yes, you can upload just the UCC filing and it will analyze whether the document itself has inconsistencies or red flags. It caught things in our case that I never would have noticed manually. Really straightforward - just upload the PDF and it does the analysis.

How did your cousin finally get it resolved? I'm worried about exactly that - this affecting other financing.

They had to hire a lawyer who specializes in UCC stuff and it ended up in court. The fake secured party eventually admitted they filed it by mistake when faced with a fraud lawsuit. Cost like $8K in legal fees though.

$8K seems steep but probably worth it to clear a fraudulent $185K lien. The longer it stays on record the more damage it can do to creditworthiness.

Good point - I used a third-party search service. Let me get an official report directly from the SOS office to make sure it's really on file.

Definitely do that first. I've seen cases where people spent weeks fighting filings that were never actually accepted by the filing office due to technical rejections.

Quarterly seems excessive for small businesses. Most companies I work with do annual searches unless they're actively borrowing.

Maybe excessive for tiny companies but any business with valuable equipment or inventory should monitor more frequently. The cost of searches is minimal compared to the damage from fraudulent liens.

I do monthly searches on all my clients' businesses through automated services. Takes 5 minutes and catches problems early when they're easier to fix.

Should I get certified statements from multiple banks? We have accounts at two different institutions.

Yes, get certified statements from all accounts that could potentially have received loan proceeds. You want to eliminate any possibility that the funds went somewhere you forgot about.

Already learned that the hard way - my bank flagged it during a preliminary review for a line of credit increase. Now they want this resolved before proceeding.

Exactly my point. These things have immediate real-world consequences. Get aggressive about getting it terminated ASAP.

Your bank might actually be helpful here - they have relationships with commercial attorneys who handle this stuff regularly and can probably recommend someone good.

Interesting angle - I assumed they were real since they answered the phone when I called. But let me verify their corporate registration.

Just because someone answers the phone doesn't mean they're legitimate. Check Secretary of State corporate records to see if they're actually registered and in good standing.

How detailed are the reports it generates? Do they hold up in legal proceedings or are they just for internal review?

The reports are pretty comprehensive and flag specific issues with citations to UCC rules. My attorney said they were helpful for understanding the technical problems with filings, though obviously you'd still need legal analysis for court.

You're probably right about needing professional help. Any suggestions on what type of attorney specializes in this? Commercial litigation seems broad.

Look for attorneys who specifically handle secured transactions or UCC disputes. Many commercial litigators don't deal with Article 9 issues regularly. Bar association referral services can usually point you to specialists.

Also consider attorneys who handle fraud cases if you believe this was intentionally fraudulent rather than just an error. The remedies can be different depending on whether it was mistake or misconduct.