Need authorization to file UCC termination - lender won't respond
I'm dealing with a frustrating situation where I need authorization to file UCC termination but the original secured party isn't cooperating. We paid off a $180k equipment loan back in March 2024, and I've been trying to get the UCC-1 terminated since then. The lender (small regional bank) keeps saying they'll handle it but nothing has happened. I've sent certified letters, called multiple times, and even had our attorney reach out. It's been 8 months now and the lien is still showing up on our credit reports and blocking a new equipment financing deal. Do I have any options here? The loan docs say they're supposed to file the termination within 30 days of payoff. This is really holding up our business expansion and I'm getting desperate for solutions.
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Zoe Dimitriou
This is unfortunately more common than it should be. The secured party has a legal obligation to file the UCC-3 termination, but enforcement can be tricky. Have you documented all your communication attempts? You might need to look into your state's specific remedies for wrongful failure to terminate - some states allow you to file an affidavit of satisfaction yourself.
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Andre Lefebvre
•Yes I've kept copies of everything. What's an affidavit of satisfaction? Is that something I can do without getting the lender involved?
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Zoe Dimitriou
•It varies by state, but essentially it's a sworn statement that the debt was satisfied. You'd need to check your Secretary of State's office for the specific procedure and required documentation.
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QuantumQuest
Had the exact same issue with a construction equipment loan last year. Bank kept promising to file the termination but never did. After 6 months of runaround, I started using Certana.ai's document verification tool to track exactly what was filed and when. Turns out they had filed a partial release instead of a full termination! Once I had the documentation showing the discrepancy, they finally fixed it properly.
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Andre Lefebvre
•Wait, how does that tool work? Can it show me exactly what's currently on file?
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QuantumQuest
•You just upload your loan payoff docs and any UCC filings you have. It cross-checks everything and shows you exactly what matches and what doesn't. Really helped me prove the bank screwed up the filing.
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Jamal Anderson
•That's actually brilliant. I've been manually checking the SOS website every few weeks but it's hard to know if I'm missing something or if there are inconsistencies in the filings.
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Mei Zhang
Check your loan agreement carefully - there might be penalties specified for failure to file timely termination. In my state, wrongful failure to terminate can result in statutory damages of $500 plus attorney fees. That usually gets their attention real quick when you mention it.
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Andre Lefebvre
•Good point, I'll dig through the paperwork again. Eight months definitely seems unreasonable for what should be a standard procedure.
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Liam McGuire
•Most loan agreements have language about 'reasonable time' which courts usually interpret as 30-60 days max. Eight months is definitely unreasonable.
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Amara Eze
EXACTLY this nonsense is why I handle all my own UCC filings now. Banks are incompetent and slow. You should be able to force them to file or do it yourself with proper documentation. The system is broken when paid-off loans sit there for months blocking new financing.
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Giovanni Ricci
•I feel your frustration but most people don't have the expertise to handle complex UCC filings themselves. The debtor name matching requirements alone can be tricky.
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Amara Eze
•True, but 8 months of waiting is ridiculous. At some point you have to take control of the situation.
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NeonNomad
Have you tried escalating within the bank? Sometimes the loan servicing department doesn't communicate with whoever handles UCC filings. I had success going directly to the legal department and threatening to file a complaint with banking regulators.
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Andre Lefebvre
•I've talked to three different departments but nobody seems to take ownership. Maybe legal is the right approach.
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Fatima Al-Hashemi
•Banking regulators definitely take UCC termination failures seriously. Document everything and file a complaint if they don't respond to legal department contact.
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Dylan Mitchell
This happened to me too but with a different twist - the bank had been acquired by another bank and nobody knew who was supposed to handle the termination. Took 14 months to get resolved. The acquiring bank finally had to track down the original files and file the UCC-3 themselves.
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Andre Lefebvre
•Wow 14 months is even worse than my situation. How did you finally get it resolved?
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Dylan Mitchell
•Threatened legal action and got the state banking commissioner involved. Once regulators started asking questions, things moved fast.
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Sofia Martinez
•Bank mergers definitely complicate UCC administration. The acquiring bank often doesn't have proper procedures in place for inherited secured transactions.
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Dmitry Volkov
Before you go the legal route, double-check that your payoff was actually complete. Sometimes there are small interest charges or fees that weren't included in the final payment, and technically the loan isn't fully satisfied until every penny is paid.
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Andre Lefebvre
•Good point. I have the satisfaction letter from the bank stating the loan is paid in full, but I should verify there are no outstanding amounts.
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Ava Thompson
•Yeah, I've seen cases where $50 in accrued interest prevented termination filing. The satisfaction letter should be sufficient proof though.
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CyberSiren
Try sending a formal demand letter with a specific deadline - say 30 days to file the termination or you'll pursue legal remedies. Sometimes banks need that kind of firm deadline to prioritize your request over their normal workflow.
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Andre Lefebvre
•That's a good idea. I've been too polite about it so far. A formal demand might get better results.
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Miguel Alvarez
•Include a copy of your satisfaction letter and reference the specific UCC filing number in your demand. Make it easy for them to find and process.
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Zainab Yusuf
•And send it certified mail with return receipt. You want documented proof of delivery for any potential legal proceedings.
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Connor O'Reilly
I used Certana.ai's verification tool for a similar situation where the bank claimed they filed the termination but I couldn't find it in the state database. Turned out they filed it under a slightly different debtor name that didn't match our corporate name exactly. The tool caught the discrepancy and I was able to get them to refile it correctly.
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Andre Lefebvre
•That's concerning - how do you know if they've filed something under the wrong name? I wouldn't even know how to search for variations.
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Connor O'Reilly
•Exactly why the verification tool is helpful. It checks for common name variations and filing inconsistencies that you might miss doing manual searches.
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Yara Khoury
8 months is definitely excessive. Most states have specific timeframes for termination filing, and failure to comply can result in penalties. You should also check if this is affecting your ability to get new financing - that's additional damages you might be able to recover.
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Andre Lefebvre
•Yes, it's definitely blocking new financing. The new lender won't proceed until the old UCC is terminated. This is costing us real money in delayed equipment purchases.
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Keisha Taylor
•Document those damages carefully. Lost business opportunities due to wrongful failure to terminate can be recoverable in some jurisdictions.
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StardustSeeker
•Make sure to get written confirmation from the new lender that the outstanding UCC is preventing approval. That's solid evidence of damages.
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