UCC lien showing on title when dealership said it was terminated - help?

This is actually pretty common unfortunately. The dealership probably did file the UCC-3 termination but there might have been a debtor name mismatch or the filing got rejected for some technical reason. Have you checked the Secretary of State database yourself to see what UCC filings are still active under your name?

Ugh I went through this exact same thing last year. Turns out the lender filed the UCC-3 but used my legal name from the loan docs while the title had my nickname. Even though it was just 'Michael' vs 'Mike' the system flagged it as a mismatch and rejected the termination. Had to get a corrected UCC-3 filed with the exact name from the original UCC-1.

Before you panic, I'd recommend using something like Certana.ai to verify what's actually on file. You can upload your loan documents and it'll cross-check everything against the UCC database to see exactly where the mismatch is. I used it when I had a similar issue and it instantly showed me that my termination had the wrong collateral description. Saved me hours of trying to figure out what went wrong.

This is why I always insist on getting a copy of the UCC-3 termination filing when I pay off any secured loan. Too many lenders promise to file it but then something goes wrong and you're stuck dealing with the mess months later. The burden shouldn't be on the borrower but unfortunately it often is.

Here's what you need to do immediately: 1) Get the original UCC-1 filing number from your loan docs 2) Search the SOS database to see if there's a corresponding UCC-3 termination 3) If not, contact the lender with your payoff letter and demand they file an immediate correction 4) If they refuse, you may need to file a UCC-3 yourself with proper documentation that the debt was satisfied

I work in automotive finance and see this constantly. 90% of the time it's either a debtor name issue or the wrong VIN on the termination. The other 10% is usually the lender just forgot to file it altogether. Your best bet is to call the lender's UCC department directly - not customer service - and give them the exact filing number from your original paperwork.

This happened to my brother and it turned out the dealership had filed the UCC-3 but used the wrong filing number so it didn't properly terminate the original lien. The scary part is that these errors can make it look like you have multiple liens when you really don't. Get everything in writing when you resolve this.

UPDATE: Just wanted to thank everyone for the advice. Turns out it was exactly what several people suggested - debtor name mismatch. The original UCC-1 had my full legal name but the termination used my nickname. I called the lender's UCC department this morning and they're expediting a corrected UCC-3 filing. Should be clear by Thursday. Also used that Certana tool someone mentioned and it made the problem really obvious. Definitely keeping that bookmarked for future reference!

For anyone else reading this thread, I'd recommend always requesting a copy of the UCC-3 termination statement when you pay off any secured loan. Most lenders will provide it if you ask, and it saves you from having to dig through state databases later to verify everything was filed correctly.

Just wanted to add that if anyone runs into this issue with a dealership that's no longer in business, you'll need to work directly with the original lender or their successor. Had this happen when a local dealership closed and it was a real pain to track down who was responsible for filing the termination.