Chat with us, powered by LiveChat

The Problem of Rogue UCC Lien Filings: What Businesses Must Know

Rogue UCC lien filings refer to illegitimate liens that are filed against a business or individual’s assets without their consent or knowledge. This can happen when someone files a fake financing statement with the state’s central filing office, encumbering property or assets that they have no legitimate claim over.

This issue has become more common in recent years. While the vast majority of UCC liens are filed properly, there are some concerning cases of people abusing the UCC filing process to harass others or extort money from them. Some key things for businesses to understand include:

  • The potential damage – Bogus liens can hurt credit ratings, interfere with sales of assets, scare off lenders/investors, and create major headaches to resolve.
  • Limited recourse – Getting the liens removed can be difficult, expensive, and time consuming. The filer usually faces no consequences either.
  • Preventative options – Businesses can pay for monitoring services to alert them of any liens filed against their assets. But protection options are imperfect.
  • Recourse options – If targeted, the business can sue for damages or to expunge the lien. But this takes time and money with no guarantee of recovering damages.

There have been some efforts to reform UCC laws and filing procedures to cut down on bad faith liens. But progress has been slow. With easy online access to file UCC forms in many states, rogue liens continue to impact far too many innocent business owners.

- -

The full scope of this issue would require much more detail and legal analysis from those well-versed in commercial and business law. But in general, businesses should be aware of the potential for UCC lien abuse and options to monitor for and respond to illegitimate filings that encumber their assets.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
How to Lower Your Monthly Auto Loan Payment

How to Lower Your Monthly Auto Loan Payment A high…

Boston Merchant Cash Advance Attorney

Boston Merchant Cash Advance Attorney Getting a merchant cash advance…

How To Get Out Of A Merchant Cash Advance – MCA Debt Relief

How to Get Out of a Merchant Cash Advance So…

Getting Free Help with Your Student Loans is Incredibly Easy

Getting Free Help with Your Student Loans is Incredibly Easy…

6 Signs Your Future Spouse Is Bad With Money

  6 Signs Your Future Spouse Is Bad With Money…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation