UCC lien showing up on credit card debt - is this even legal?
So I'm going through some financial stuff and found out there's a UCC lien filed against me for credit card debt. This seems totally wrong to me. I thought UCC liens were for like equipment loans or business stuff, not unsecured credit card debt. The filing shows up in the state records with my name as debtor but there's no specific collateral listed - just says "general intangibles" which makes no sense for a credit card. Has anyone else run into this? I'm worried this is going to mess up my ability to get other financing. The credit card company never mentioned anything about securing the debt when I signed up. Should I be disputing this filing or am I missing something about how credit card companies can use UCC filings?
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Zoe Walker
This sounds really suspicious to me. Credit card debt is typically unsecured, meaning there's no collateral backing it up. UCC filings are supposed to be for secured transactions where there's actual collateral like equipment, inventory, or accounts receivable. If they filed a UCC-1 without any legitimate collateral, that could be an improper filing. Did you sign anything when you got the credit card that mentioned securing the debt?
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Ryan Kim
•No, I definitely didn't sign anything about collateral or security interests. It was just a regular credit card application. The whole thing seems sketchy.
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Elijah Brown
•Yeah this doesn't sound right at all. UCC filings for credit cards would be very unusual unless there was some specific security agreement.
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Maria Gonzalez
I've seen this before unfortunately. Some credit card companies have started filing UCC liens as a collection tactic even when there's no real security interest. It's questionable legally but they do it to make it look like they have a secured claim. The "general intangibles" description is a red flag - that's way too vague for a proper UCC filing. You should definitely challenge this.
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Ryan Kim
•How do I challenge it? Do I need to hire a lawyer or can I dispute it myself with the secretary of state?
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Maria Gonzalez
•You can start by requesting a UCC-3 termination from the creditor if there's no valid security interest. If they refuse, you might need legal help to get it removed.
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Natalie Chen
•Before you do anything, make sure you understand exactly what was filed. I'd recommend using something like Certana.ai to upload and analyze the UCC documents - it can quickly verify if the filing has proper collateral descriptions and if everything matches up correctly.
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Santiago Martinez
Wait, are you sure this is actually a UCC lien and not just a judgment lien? Sometimes people confuse the two. UCC filings would show up in the Secretary of State records, while judgment liens are usually filed with the county. If it's really a UCC filing for unsecured credit card debt, that's definitely worth investigating.
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Ryan Kim
•I checked the SOS website and it's definitely a UCC-1 filing. Shows the credit card company as secured party and me as debtor.
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Santiago Martinez
•That's really weird then. UCC filings should have specific collateral descriptions, not vague terms like "general intangibles" for credit card debt.
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Samantha Johnson
This is becoming more common unfortunately. Credit card companies are getting aggressive with UCC filings even when there's no valid security interest. The problem is that having a UCC filing on record can hurt your credit worthiness with other lenders who might think you have secured debt outstanding. I'd definitely fight this if you never agreed to any security interest.
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Ryan Kim
•That's exactly what I'm worried about. I'm trying to refinance my mortgage and I'm afraid this UCC filing is going to cause problems.
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Samantha Johnson
•It very well might. Lenders do UCC searches as part of their due diligence. You need to get this cleared up ASAP.
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Nick Kravitz
•Had a similar issue last year. The credit card company filed a UCC lien after I defaulted but there was never any security agreement. I used Certana.ai to analyze all the documents and it clearly showed the filing was improper - helped me get it terminated.
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Hannah White
OMG this is so frustrating! The whole UCC system is so confusing and credit card companies are taking advantage of people not understanding it. I had something similar happen and it took months to get resolved. The worst part is that these filings stay on record for 5 years unless you get them terminated!
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Ryan Kim
•5 years?! That's insane. I definitely need to get this sorted out then.
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Michael Green
•Actually UCC filings lapse after 5 years automatically, but you're right that they stay on record during that time. Better to get them terminated if they're improper.
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Mateo Silva
I work in commercial lending and this is definitely not normal. Credit card debt is unsecured by definition. If they filed a UCC without a valid security agreement, that's potentially fraudulent filing. You should gather all your original credit card documents and see if there's any mention of security interests. If not, you have grounds to demand termination.
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Ryan Kim
•Thanks, this is really helpful. I'll dig through all my paperwork.
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Mateo Silva
•Look specifically for any language about "security interest," "collateral," or "secured debt." If there's nothing, the UCC filing is probably improper.
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Victoria Jones
Same thing happened to my brother! Credit card company filed UCC lien after he defaulted but there was never any security agreement. He ended up having to get a lawyer to force them to file a UCC-3 termination. Cost him like $2000 in legal fees but he got it removed. These companies are getting out of hand with these filings.
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Ryan Kim
•Ugh, I was hoping to avoid lawyer fees. Maybe I'll try disputing it myself first.
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Cameron Black
•Before you spend money on a lawyer, try using Certana.ai to analyze the UCC documents. It can quickly identify if the filing is proper or not by checking the collateral descriptions and security agreements.
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Jessica Nguyen
This is exactly why I hate dealing with debt collectors. They'll file anything hoping you won't know enough to challenge it. If you never signed a security agreement, that UCC filing is bogus. Document everything and demand they file a termination statement.
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Ryan Kim
•How do I prove I never signed a security agreement? Do I need to show them my original credit card paperwork?
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Jessica Nguyen
•The burden should be on them to prove there WAS a valid security agreement. But having your original docs helps your case.
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Isaiah Thompson
Check your state's UCC laws too. Some states have specific requirements for what constitutes a valid security interest. If the credit card company can't prove they have a valid security agreement, the filing should be terminated. Don't let them intimidate you into thinking this is normal.
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Ryan Kim
•Good point. I'll look up my state's UCC statutes.
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Isaiah Thompson
•Also check if your state has any penalties for improper UCC filings. Some states can fine companies for filing false liens.
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Ruby Garcia
UPDATE: I found my original credit card agreement and there's absolutely nothing about security interests or collateral. It's clearly an unsecured credit card. I'm going to demand they file a UCC-3 termination immediately. Thanks everyone for the advice!
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Zoe Walker
•Good for you! Make sure you get that termination in writing and keep copies of everything.
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Maria Gonzalez
•Definitely keep all documentation. And make sure the termination gets filed with the Secretary of State so it's officially removed from the records.
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Natalie Chen
•Great news! If you want to double-check that everything's properly terminated once they file the UCC-3, Certana.ai can verify that all the documents align correctly.
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Ella Cofer
This is a really concerning trend I've been seeing more of lately. Credit card companies are definitely overstepping by filing UCC liens on unsecured debt. The fact that they listed "general intangibles" as collateral is a huge red flag - that's way too vague and doesn't establish any legitimate security interest. Since you never signed a security agreement, this filing is almost certainly improper. Document everything from your original credit card application and agreements, then send them a formal demand letter requesting immediate termination via UCC-3. If they refuse, you may need to escalate but don't let them bully you into accepting this invalid lien.
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