UCC 1 release form confusion - bank says they filed but lien still shows active
My equipment loan was paid off 8 months ago and the bank swore they would handle the UCC 1 release form filing immediately. I just pulled a search and the lien is still showing as active in the system. The loan officer keeps telling me 'it takes time' but 8 months seems excessive? I need this cleared for a new credit application and my accountant is asking questions. Has anyone dealt with banks dragging their feet on release forms? The original filing was for manufacturing equipment worth about $180K. Not sure if I should be pushing harder or if there's something I can do myself to expedite this.
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Liam Murphy
8 months is way too long. Most banks file UCC-3 termination statements within 30 days of payoff, some within 10 days if they're efficient. You need to get aggressive with them - this is affecting your creditworthiness. Did they give you a payoff letter when you completed the loan?
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Sasha Ivanov
•Yes I have the payoff letter dated from February. It clearly states the loan is satisfied in full. Should I be waving this around?
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Liam Murphy
•Absolutely. That payoff letter is your proof. Tell them you need the UCC-3 termination filed immediately or you'll file a complaint with banking regulators. Most banks will move fast when you mention regulatory complaints.
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Amara Okafor
This is exactly why I always verify UCC releases myself. Banks promise but don't always follow through. You can actually search the UCC database yourself to see the current status. What state are you in? Each Secretary of State has their own search portal.
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Sasha Ivanov
•I'm in Ohio. I did search the SOS database and that's how I found out it's still active. The original UCC-1 shows up but no termination statement.
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Amara Okafor
•Ohio's system is pretty reliable for showing updates quickly. If there's no UCC-3 termination showing up there, then the bank definitely hasn't filed it yet. Time to escalate this internally at the bank.
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CaptainAwesome
•I had a similar issue with a bank in Ohio last year. Took me threatening to involve their compliance department before they finally filed the termination. Some loan officers just don't understand the urgency.
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Yuki Tanaka
Before I started using Certana.ai's document verification tool, I had this exact problem with a different lender. What helped me was uploading both my payoff letter and pulling the current UCC search results - their system instantly flagged that I had proof of payoff but no corresponding termination on file. Made it super easy to show the bank exactly what was missing and get them to act fast.
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Sasha Ivanov
•That sounds really helpful. How does that verification tool work exactly? I'm getting tired of manually checking the SOS website every few weeks.
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Yuki Tanaka
•You just upload your payoff docs and current UCC search results as PDFs and it cross-checks everything automatically. Shows you immediately if there are any inconsistencies or missing terminations. Really streamlined the whole process for me.
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Esmeralda Gómez
Banks are REQUIRED to file termination statements when loans are paid off. This isn't optional. If they're dragging their feet, you need to escalate to a branch manager or loan operations supervisor. Don't let them brush you off with 'it takes time' - that's nonsense.
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Sasha Ivanov
•I've been dealing with the same loan officer who handled the original loan. Should I be going over his head at this point?
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Esmeralda Gómez
•Absolutely go over his head. Ask to speak with the loan operations manager or compliance officer. Mention that you have documentation of the payoff and need the UCC-3 termination filed immediately to clear your credit profile.
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Klaus Schmidt
•This is why I always get the UCC filing details upfront when taking out secured loans. Makes it easier to track and follow up on terminations later.
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Aisha Patel
ugh this is giving me flashbacks to my own UCC nightmare from a few years ago. Bank kept saying they'd 'get to it' while I'm trying to refinance equipment and lenders are seeing active liens on my credit. Finally had to threaten legal action before they moved. Document everything - emails, phone calls, dates.
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Sasha Ivanov
•How long did your situation drag on? I'm worried this is going to affect my new loan application timeline.
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Aisha Patel
•Mine went on for about 6 months before I got serious about pushing back. Don't wait as long as I did - start escalating now.
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LilMama23
Check if your loan agreement specified a timeframe for UCC release. Many commercial loan docs include language about termination filing timelines. If they're violating their own contract terms, that gives you more leverage.
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Sasha Ivanov
•Good point, I'll dig through the original loan paperwork tonight. I remember there being a lot of UCC-related language in there.
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LilMama23
•Look specifically for sections about 'release of security interest' or 'termination of UCC filing' - usually in the payoff/satisfaction clauses.
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Dmitri Volkov
•Most commercial loans I've seen require UCC termination within 30 days of payoff. If they missed their own deadline, that's a breach of contract issue.
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Gabrielle Dubois
Is there any chance they filed the termination but there's a processing delay with the Secretary of State? Sometimes there can be backlogs, especially if they submitted a paper filing instead of electronic.
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Sasha Ivanov
•Ohio processes electronic UCC filings pretty quickly from what I understand. And 8 months would be an insane processing delay even for paper filings.
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Liam Murphy
•You're right, 8 months is way beyond any reasonable processing delay. The bank just hasn't filed it yet.
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Tyrone Johnson
I work in commercial lending and I can tell you that 8 months is completely unacceptable. We file UCC-3 terminations within 72 hours of loan payoff as standard practice. Your bank has dropped the ball here and you need to make noise about it.
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Sasha Ivanov
•That's reassuring to hear from someone in the industry. I was starting to wonder if my expectations were unrealistic.
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Tyrone Johnson
•Not at all. This is basic loan administration stuff. The fact that they're still giving you the runaround after 8 months is a red flag about their operations.
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Ingrid Larsson
•Agreed. Most of our clients would be furious if we let a termination drag on for more than a month, let alone 8 months.
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Carlos Mendoza
Have you considered filing the termination yourself? If you have proof of payoff and the original UCC filing details, you might be able to submit a UCC-3 termination directly. Check with the Ohio Secretary of State about the process.
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Sasha Ivanov
•I didn't know borrowers could file terminations themselves. That might be worth looking into if the bank keeps stalling.
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Carlos Mendoza
•It's not common but it's possible in some circumstances. You'd need clear documentation that the debt is satisfied. Might be easier to just force the bank to do their job though.
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Zainab Mahmoud
Whatever you do, don't let this slide any longer. Active UCC liens can seriously impact your ability to get credit or even sell the equipment if needed. Banks know this and they're taking advantage of your patience.
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Sasha Ivanov
•You're absolutely right. I've been too polite about this whole situation. Time to get more aggressive.
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Zainab Mahmoud
•Exactly. Be polite but firm. Tell them you need this resolved within 10 business days or you'll be escalating to regulatory authorities.
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Yuki Tanaka
•That's when tools like Certana.ai really help - having clear documentation of the discrepancy makes your case much stronger when you're pushing the bank to act.
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Anastasia Popov
I'm dealing with something similar right now - bank paid off 6 months ago and still no UCC termination filed. What's really frustrating is how this affects your credit profile when you're trying to get new financing. Other lenders see that active lien and assume you still have outstanding debt, even when you show them the payoff letter. Has anyone had success getting banks to expedite the filing process, or do you just have to keep escalating until someone finally acts?
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