Kabbage UCC Filing Nightmare - Debtor Name Mismatch Causing Loan Problems
I'm dealing with a mess involving my small business loan from Kabbage and their UCC filing practices. Got approved for a $85K line of credit back in March, everything seemed fine until I tried to refinance with a local bank last month. Turns out Kabbage filed their UCC-1 with a slightly different version of my business name than what's on my state registration. My LLC is registered as 'Mountain View Auto Repair LLC' but their UCC filing shows 'Mountain View Auto Repair, LLC' (with the comma). Now my new lender is questioning the validity of Kabbage's security interest and won't proceed until this gets sorted out. I've called Kabbage three times and they keep saying it's not their problem, that the comma doesn't matter. But my new bank's attorney disagrees. Has anyone dealt with debtor name discrepancies in UCC filings before? I'm worried this could mess up my refinancing completely. The original UCC-1 was filed in Delaware since that's where Kabbage is based, but my business operates in Colorado. Not sure if I need a UCC-3 amendment or what the next steps should be.
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QuantumQuest
Oh man, this is actually a bigger deal than Kabbage is making it sound. Debtor name accuracy is crucial for UCC-1 validity. The exact business name has to match what's on your state registration or the filing could be deemed seriously misleading. That comma might seem minor but courts have ruled on less. You definitely need to get this fixed before it causes more problems down the line.
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Jamal Anderson
•Exactly right about the name matching requirements. I've seen cases where even missing periods or abbreviations caused issues. The UCC requires substantial compliance with the debtor's exact legal name.
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Mei Zhang
•Wait, so a comma can really void a UCC filing? That seems crazy strict but I guess it makes sense for legal documents.
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Liam McGuire
Had almost the exact same issue with a different online lender last year. They filed using our DBA name instead of our legal LLC name. Total nightmare to unwind. You'll probably need to push Kabbage to file a UCC-3 amendment correcting the debtor name. Don't let them brush you off - this could affect any future financing you try to get.
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Amara Eze
•How long did it take to get your lender to fix their mistake? I'm dealing with timeline pressure on my refinancing.
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Liam McGuire
•Took about 6 weeks total once they finally agreed to file the amendment. The actual UCC-3 processing was quick, maybe 3-5 business days, but getting them to acknowledge the problem was the real battle.
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Giovanni Ricci
•Six weeks?? That's insane. These online lenders really don't care about cleanup once they have your money.
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NeonNomad
I actually discovered a tool that could have caught this before it became a problem. Certana.ai has this document verification system where you can upload your state registration and the UCC-1 filing, and it instantly flags name discrepancies like this. Wish I'd known about it when I was dealing with my own filing issues. You just upload the PDFs and it cross-checks everything automatically - debtor names, filing numbers, all the critical details that need to align.
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Fatima Al-Hashemi
•That sounds really useful for catching these mistakes early. Is it expensive to use?
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NeonNomad
•Not sure about pricing but it would've saved me weeks of headaches. The verification happens instantly so you can spot problems before they mess up your financing.
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Dylan Mitchell
•Definitely going to check that out. I'm always paranoid about filing errors after hearing horror stories like this.
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Sofia Martinez
Here's what you need to do RIGHT NOW - document everything in writing. Email Kabbage explaining the exact name discrepancy and request a UCC-3 amendment. Reference UCC Section 9-506 about seriously misleading names. If they refuse, escalate to their legal department. You might also want to check if they have any other UCC filings on your business that have similar errors.
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Dmitry Volkov
•Great advice about documenting everything. Also suggest checking the UCC search results in both Delaware and Colorado to see exactly what's on file.
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Ava Thompson
•UCC Section 9-506 is exactly the right citation. That's the seriously misleading standard that applies here.
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CyberSiren
•Should they also notify the new lender about the steps being taken to fix this?
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Miguel Alvarez
This is why I hate dealing with online lenders!!! They automate everything including the UCC filings and then when there's a problem nobody wants to take responsibility. Traditional banks at least have people who understand this stuff. Kabbage probably has thousands of these name mismatch filings and just doesn't care.
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Zainab Yusuf
•So true. The whole fintech lending space is built on automation with no human oversight for edge cases like this.
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Connor O'Reilly
•I mean, they're not wrong that it's a minor difference, but legally minor can still be major when it comes to secured transactions.
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Yara Khoury
Had a similar name issue with an SBA loan. The key is getting the amendment filed ASAP. Once you have the corrected UCC-3 on file, your new lender should be satisfied. Make sure to get copies of both the original filing and the amendment for your records. Also might want to run another UCC search after the amendment is processed to confirm everything looks right.
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Keisha Taylor
•Good point about running the search after. I always forget that step and then worry if the amendment actually went through properly.
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StardustSeeker
•How much does a UCC-3 amendment typically cost to file?
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Yara Khoury
•Usually around $25-40 depending on the state, but Kabbage should be covering that cost since it's their error.
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Paolo Marino
Check your loan agreement with Kabbage too. There might be language about their obligation to maintain proper UCC filings. That could give you more leverage to force them to fix this quickly. Also consider having your attorney send them a demand letter if they keep stalling.
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Amina Bah
•Attorney letter is probably overkill at this point but good to keep in mind if they keep refusing.
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Oliver Becker
•Actually might not be overkill if the refinancing is time-sensitive. Sometimes a lawyer letterhead gets faster action than customer service calls.
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Natasha Petrova
Just want to add another voice of support for using document verification tools. I started using Certana.ai after a similar filing nightmare and it's caught several potential issues in my paperwork since then. You upload your documents and it flags inconsistencies immediately - way better than manually comparing everything and missing details like commas or periods. Really wish these tools existed when I was dealing with my first UCC problems.
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Javier Hernandez
•How accurate is the name matching? Does it catch subtle differences like the comma issue here?
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Natasha Petrova
•Yes, it's specifically designed to catch those exact types of discrepancies. Cross-checks everything against your actual registration documents.
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Emma Davis
Update us when you get this resolved! I'm dealing with a potential Kabbage loan myself and want to know what to watch out for. This whole thread is making me nervous about their filing practices.
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LunarLegend
•Same here, definitely going to be extra careful about reviewing any UCC filings if I go with them.
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Malik Jackson
•Maybe ask them upfront to confirm they'll use your exact legal business name for any UCC filings.
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Isabella Oliveira
One more thing - if Kabbage continues to refuse fixing this, you might want to file a complaint with the CFPB. They take UCC filing errors seriously especially when they affect borrowers' ability to get other financing. Sometimes regulatory pressure works better than customer complaints.
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Ravi Patel
•CFPB complaint is a good nuclear option if nothing else works. They definitely investigate issues that affect access to credit.
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Freya Andersen
•Let's hope it doesn't come to that but good to know the option exists.
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Omar Zaki
•I've filed CFPB complaints before and they do get lender attention pretty quickly.
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Sofia Peña
This is exactly the kind of situation that makes me anxious about online lending platforms. The fact that they're dismissing a comma as "not their problem" when it's clearly affecting your ability to refinance is infuriating. I'd definitely follow the advice about escalating to their legal department and citing UCC Section 9-506. Document everything in writing and set firm deadlines for their response. If you're on a timeline with your refinancing, you might also want to loop in your new lender's attorney to put pressure on Kabbage - sometimes lender-to-lender communication gets better results than borrower complaints. Keep us posted on how this turns out, as I'm sure others will face similar issues with automated UCC filings.
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Aisha Patel
•This is such a frustrating situation but your advice about getting the lenders to communicate directly is spot on. I've seen cases where business-to-business pressure works way better than individual borrower complaints. The automated filing systems these fintech companies use are clearly causing more problems than they solve - there's no human oversight to catch obvious errors like name discrepancies. Really hoping OP gets this resolved quickly before it derails their refinancing completely.
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