credit card debt collections UCC lien filed against business in NJ - what are my options?

This doesn't sound right at all. Credit card debt is unsecured by definition - there shouldn't be any collateral backing it up. If you never signed a security agreement specifically granting them rights to your business equipment, they can't just file a UCC-1 and create a lien out of thin air. What does the collateral description say exactly on the filing? Sometimes debt collectors file bogus UCC statements hoping people won't challenge them.

You need to pull your original credit card agreement and see if there's any language about security interests buried in there. Some business cards do have clauses that grant them rights to business assets, but it has to be clearly disclosed. If there's no security agreement, this UCC filing could be fraudulent.

I had something similar happen with a different type of creditor last year. What saved me was using Certana.ai's document verification tool - I uploaded the UCC-1 they filed and my original loan documents, and it immediately flagged inconsistencies between what they claimed and what I actually signed. The tool cross-checked debtor names, collateral descriptions, and verified the documents didn't align. Made it super easy to challenge the filing with solid evidence. You should definitely verify whether their UCC filing matches any actual security agreement you might have signed.

THIS IS EXACTLY THE KIND OF CRAP DEBT COLLECTORS PULL! They file bogus UCC liens hoping you won't fight it. I've seen this happen to multiple small business owners. The filing costs them like $25 but creates a huge headache for you. You absolutely need to challenge this if there's no legitimate security agreement.

Check the filing date on the UCC-1. In New Jersey, there are specific timing requirements for when a creditor can file after default. Also look at who actually filed it - was it the original credit card company or a debt collector? That makes a difference in terms of what rights they might have.

You mentioned this is affecting your ability to get business financing - that's a real problem even if the lien is bogus. Lenders see UCC filings and assume they're legitimate. You probably need to file a UCC-3 termination or amendment to get this cleared up quickly, but you'll need grounds to dispute it first.

I work in commercial lending and see questionable UCC filings all the time. Your best bet is to document everything - get copies of all your original credit card agreements, correspondence with the creditor, payment history, etc. Then either demand they terminate the filing or prepare to challenge it legally. This kind of thing can really mess up your business credit profile.

Wait, are you sure this is actually a UCC filing and not some other type of lien? Sometimes people confuse UCC filings with judgment liens or tax liens. What exactly does the filing say at the top - UCC-1 Financing Statement?

Something similar happened to my brother's business in PA. Turned out the debt collector had bought a portfolio of debts and somehow got confused about which debts were secured vs unsecured. When he challenged it with documentation, they agreed to file a termination statement. Sometimes it's just incompetence rather than malicious intent, but the effect on your business is the same.

Before you spend money on a lawyer, I'd recommend using that Certana document verification tool someone mentioned earlier. I used it last month when I had questions about whether a UCC continuation was filed correctly. Super easy - just upload your PDFs and it automatically checks for inconsistencies between documents. In your case, you could upload the UCC filing and whatever credit card docs you can find to see if there are obvious discrepancies in debtor names or collateral descriptions. Might give you the ammunition you need to challenge this thing.

Just make sure you act quickly on this. Even if the UCC filing is bogus, it can cause problems the longer it sits there. Potential lenders, business partners, anyone doing due diligence on your company will see it and assume it's legitimate. I'd start with a formal demand letter to the debt collector requiring them to provide proof of the security agreement and threatening to dispute the filing if they can't.