How to terminate a UCC filing - loan paid off but lien still active

Thanks, I was hoping that was the case. Do you know how long they typically have to file the termination? The loan was paid off 6 weeks ago.

Most states require it within 30 days of payoff, so they're already late. Some states impose penalties on lenders who don't file timely terminations.

What state was this in? I'm wondering if there are specific penalties I can mention when I call them.

Iowa. They have pretty strict rules about timely UCC-3 filings. Check your state's banking regulations - most have similar requirements.

Banking department complaints work wonders. Had a similar issue and the termination was filed same day I mentioned filing a complaint.

Good point. I'll verify the filing number tonight. There was a modification in 2021 when we added some additional equipment to the collateral.

Yeah, modifications can create separate filings. You might need terminations for multiple UCC-1s depending on how they structured it.

Never heard of that service. Is it expensive? We deal with a lot of equipment financing and always struggle with keeping track of which UCC filings go with which loans.

It's actually pretty reasonable for what it does. You just upload PDFs and it cross-references everything automatically. Saved me from a major headache when I thought a termination was missing but it turned out I was looking at the wrong amendment.

This sounds like it could solve a lot of problems. We have like 8 different equipment loans and the UCC filings are a mess.

Really? I had no idea debtors could file their own terminations. Is there a specific form for this?

Yeah, it's usually called a 'debtor's termination statement' or something similar. Check your Secretary of State website - they should have the form and instructions.

Be careful with this though. Some states are really picky about the documentation required. Make sure you have everything perfect or it could get rejected.

Honestly, I think it's just poor internal processes. The loan department gets the payoff but doesn't communicate with whoever handles UCC filings. Then it sits in someone's queue for months.

Plus there's no real consequence for most lenders if they're late. They're not losing money, just creating problems for the borrower.

Some states have started fining lenders for late terminations but enforcement is pretty spotty.

Good advice. I've been calling but should probably switch to email so there's a record.

Exactly. Email creates a timestamp and forces them to acknowledge your request in writing. Much harder for them to claim they never heard from you.

Oh wow, I never would have thought of that. How did you get them to fix it?

Once I had the documentation showing exactly what was wrong, they filed an amendment pretty quickly. Having the proof made all the difference in the conversation.

This is why I hate dealing with UCC stuff. So many ways for things to go wrong and most people don't catch the mistakes.

This is so true. Customer service reps have no idea what a UCC filing even is half the time.

Exactly. Ask to be transferred to whoever handles 'lien releases' or 'UCC terminations' specifically. Don't let them put you back in the general customer service queue.

How long do you usually give them to respond before escalating?

I give them 10 business days from receipt of the certified letter. That's reasonable but shows you're serious about the timeline.

The key is mentioning specific state regulations in your letter. Shows you've done your homework and aren't just making idle threats.

Will do! Planning to call them Monday morning with the filing numbers and documentation ready. Hoping the direct approach works before I have to escalate.

If you use that document checker I mentioned, you'll have everything organized perfectly for the call. Makes the conversation go much smoother when you can reference specific filing details.