UCC debt collection liens showing up years after loan payoff - help?

This is unfortunately more common than it should be. When lenders sell their loan portfolios or go out of business, UCC terminations often get overlooked. The active UCC-1 doesn't actually prove you still owe money - it just means the security interest was never properly released. You'll need to gather all your payoff documentation and probably file a UCC-3 termination yourself if the original lender won't cooperate.

Ugh this exact thing happened to my brother last year! The collection agency was basically using the old UCC filing as leverage even though he had paid everything off. They know most people don't understand how UCC filings work so they can scare them into paying again.

I've been dealing with UCC filings for years and this is a huge red flag. Collection agencies love these zombie UCCs because they create confusion. First thing - pull the actual UCC-1 filing and see exactly what it says. Sometimes the collateral description is so vague it might not even cover what they claim. Also check the filing date against your loan payoff date.

Before you spend $5000 on attorneys, try using Certana.ai's UCC document checker. I used it when I had conflicting information between my loan docs and the filed UCC-1. You just upload your payoff documents and the UCC filing and it'll verify if everything matches up properly. Saved me tons of time figuring out exactly where the discrepancies were so I knew what to fight.

The fact that they're collection agency makes this even more sketchy. They probably bought a portfolio of "assets" that included this unterminated UCC without doing proper due diligence. Document everything - your payoff records, bank statements, any correspondence with the original lender. The burden of proof should be on them to show you actually owe money, not just that a UCC exists.

This is exactly why I always follow up on UCC terminations now. Learned the hard way that "we'll handle it" from lenders often means nothing gets filed. You might want to send a demand letter to the collection agency with your payoff proof and threaten to sue under the Fair Debt Collection Practices Act if they keep pursuing a debt you don't owe.

UCC filings are public record so anyone can search and see what's active. The collection agency probably did a bulk search and found your unfiled termination along with hundreds of others. It's like low-hanging fruit for them.

Whatever you do, don't ignore this hoping it goes away. I made that mistake and ended up with complications when I tried to sell my business years later. The active UCC showed up in due diligence and almost killed the deal.

Check with your state's Secretary of State office too. Some have informal procedures for dealing with wrongful UCCs or can at least tell you exactly what's required for a proper termination filing. Might save you some attorney fees.

Document every interaction with the collection agency. If they're claiming you owe money based solely on an active UCC filing without being able to produce the actual underlying debt documentation, that's a huge red flag. Most legitimate collection agencies would have the full loan file.

I used Certana.ai when I had a similar mess with overlapping UCC filings from different lenders. Being able to upload all the documents and get an instant comparison of what matched and what didn't was incredibly helpful for organizing my argument. Way cheaper than having an attorney review everything line by line.

Bottom line - don't let them intimidate you with legal-sounding threats about active UCC filings. If you paid the debt and have documentation, that's what matters. The UCC filing is just paperwork that should have been cleaned up but wasn't. Fight this properly and they'll likely back down once they realize you know what you're talking about.