Urgent help needed with UCC removal after loan payoff - debtor name complications
We paid off our equipment loan three months ago but the UCC filing is still showing as active on our credit reports. The original UCC-1 was filed under our old business name (we changed it six months before the loan was finalized but somehow the old name got used). Now the lender is saying they can't file the UCC-3 termination because the debtor name on their records doesn't exactly match what's on the original filing. They want US to handle the UCC removal process but I'm not sure we can legally do that as the debtor. This is affecting our ability to get new financing for expansion. Has anyone dealt with this kind of debtor name mismatch situation for UCC removal? Do we need to get an amendment first or can the termination reference both names? The filing is in Delaware and shows our federal tax ID correctly but the business name is off by one word.
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AstroAdventurer
This is actually pretty common with business name changes. The lender should be able to file a UCC-3 termination that references the original debtor name exactly as it appears on the UCC-1, even if it's your old name. They don't need to match their current records - they need to match the original filing. Have you shown them the exact text from the original UCC-1?
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Jamal Carter
•Yes I pulled the original filing from Delaware's system and sent it to them. The business name shows as 'ABC Manufacturing LLC' but we're now 'ABC Advanced Manufacturing LLC'. Same federal tax ID number though. They're claiming their loan system only shows the new name.
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AstroAdventurer
•That's their internal system problem, not a UCC problem. The termination needs to match the original filing exactly. You might need to escalate this to their legal department because whoever is handling it doesn't understand UCC procedures.
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Mei Liu
Just went through something similar last year. Our lender initially refused to file the termination due to a name discrepancy. What worked for us was providing a copy of our state filing showing the name change along with the UCC-1. They were able to file the UCC-3 termination using the original debtor name with a note referencing the name change documentation.
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Jamal Carter
•Did you have to get any kind of amendment first or did they go straight to termination?
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Mei Liu
•Straight to termination. The key was providing the state certificate showing the name change. Made it clear we were the same legal entity. The UCC-3 termination used the exact original debtor name from the UCC-1.
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Liam O'Sullivan
•This is correct. You don't amend before terminating unless there's an actual error in the original filing. A business name change isn't an error - it's just a change in the debtor's corporate status after the fact.
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Amara Chukwu
Before you go further with the lender hassle, you might want to verify exactly what's on that UCC-1 filing. I've seen cases where people thought there was a name mismatch but it was actually filed correctly and they just remembered wrong. Also check if there are multiple UCC filings - sometimes lenders file amendments or continuations that could complicate the termination.
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Jamal Carter
•Good point. I double-checked and there's only the one UCC-1 filing from 2022. No amendments or continuations. The name is definitely wrong though - it's our old name from before we added 'Advanced' to our business name.
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Giovanni Conti
•I actually ran into a similar document verification issue recently. Found this tool called Certana.ai that lets you upload your charter documents and UCC filings to instantly check for name mismatches and inconsistencies. Might be worth running your documents through it before you push back on the lender - gives you concrete evidence of exactly what needs to be addressed.
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Fatima Al-Hashimi
Your lender is being ridiculous. As the secured party, they have the right and obligation to file the UCC-3 termination when the debt is satisfied. The debtor name on the termination MUST match the original UCC-1 exactly. Their internal records are irrelevant to the UCC system. I'd send them a demand letter with a copy of the UCC code section requiring termination within a reasonable time after payoff.
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NeonNova
•What's the time requirement in Delaware? Some states have specific deadlines for lenders to file terminations after payoff.
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Fatima Al-Hashimi
•Delaware requires termination within 20 days after the secured party receives written demand from the debtor, or within 30 days after the debt is satisfied if no demand is made. Three months is definitely past the deadline.
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Jamal Carter
•I didn't know about the specific timeframes. Should I send a formal written demand? We've only been dealing with this through phone calls and emails so far.
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Dylan Campbell
Wait, are you sure the lender even has the authority to file the termination if they're claiming they can't verify the debtor identity? I thought there were liability issues if they terminate the wrong UCC filing. Maybe that's why they're being cautious?
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Liam O'Sullivan
•No, that's not how it works. The lender was the secured party who filed the original UCC-1. They have both the right and the obligation to terminate it when the debt is paid off. The debtor name matching is their responsibility to get right, but it has to match the original filing, not their current records.
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Dylan Campbell
•Ok that makes sense. I was thinking of a situation where someone accidentally terminates the wrong filing, but if they filed the original then they should know which one to terminate.
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Sofia Hernandez
Three months is way too long for this to drag on. I'd contact Delaware's UCC office directly and ask them about the proper procedure for this situation. Sometimes the state office can provide guidance that helps resolve disputes with lenders. They might even have a standard form letter you can use.
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Jamal Carter
•That's a good idea. I'll call Delaware's Secretary of State office tomorrow. Do you know if they have a specific UCC help line?
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Sofia Hernandez
•Yes, Delaware has a dedicated UCC section. You can call their main number and ask for UCC customer service. They're usually pretty helpful with procedural questions like this.
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Dmitry Kuznetsov
This is exactly why I always recommend keeping detailed records of all corporate name changes and making sure lenders update their systems immediately. But for your current situation, the lender needs to stop making excuses and file the termination using the original debtor name. Period.
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Ava Thompson
•Easier said than done when you're dealing with a large bank's bureaucracy. Sometimes these things get stuck in their system and you need to find the right person who actually understands UCC procedures.
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Dmitry Kuznetsov
•True, but three months is beyond reasonable. At this point it's affecting the business owner's credit and ability to get new financing. Time to escalate aggressively.
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Miguel Ramos
Just want to add that you should document everything in writing from this point forward. If you end up having to take legal action or file a complaint with regulators, you'll need a clear paper trail showing the lender's refusal to follow proper UCC termination procedures.
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Jamal Carter
•Good point. I've been saving all the emails but most of our conversations have been over the phone. I'll start sending written follow-ups to document the phone calls.
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Zainab Ibrahim
•Also keep records of any business impact - loan applications that were denied or delayed because of the active UCC filing. That could be relevant if you need to pursue damages later.
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StarSailor
Had a similar issue two years ago with a different kind of name problem. What finally worked was getting our attorney to send a letter to the bank's general counsel explaining the UCC requirements and demanding immediate compliance. Sometimes legal letterhead gets attention that borrower complaints don't.
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Jamal Carter
•How much did that cost? We're trying to avoid legal fees if possible but it might be worth it to get this resolved.
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StarSailor
•Our attorney charged about $500 for the letter. Bank filed the termination within a week after receiving it. Probably cheaper than the financing delays you're facing.
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Connor O'Brien
•Sometimes you don't even need a full attorney letter. A well-written demand letter citing the specific UCC statute requirements can be effective if it looks official enough.
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Yara Sabbagh
Before you go the legal route, try one more approach with the lender. Ask to speak with their UCC specialist or secured transactions department. The regular loan servicing people often don't understand UCC procedures, but most large lenders have specialists who handle these filings correctly.
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Jamal Carter
•I've been dealing with their loan servicing department. Do you know how I'd find out if they have a separate UCC department?
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Yara Sabbagh
•Ask the loan servicing rep to transfer you to 'secured transactions' or 'UCC administration.' If they don't have a separate department, ask for their supervisor who handles UCC terminations.
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Keisha Johnson
•Also try asking for their 'collateral administration' department. Different banks use different names but they all have someone who specializes in UCC filings.
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