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No, you don't need to pay $100+ for a Uniform Commercial Code Statement (UCC-1)

Tennessee Secretary of State Tre Hargett issued a warning about an official-looking mailer targeting businesses and individuals about a UCC-1 statement.
Credit: Tennessee Secretary of State

MEMPHIS, Tenn. — Tennessee Secretary of State Tre Hargett has issued a warning about an official-looking mailer targeting businesses and individuals about a UCC-1 statement.

According to the Secretary of State’s Office, “the Uniform Commercial Code (UCC) is a comprehensive set of laws governing sales and other commercial transactions. A UCC-1 financing statement is a legal form that a creditor files to give notice that it has the right to take possession of and sell certain assets belonging to the debtor for the repayment of a specific debt.”

Hargett’s Office said the mailer claims people must pay $107 for a service to request a copy of the UCC-1 statement. It implies the recipient needs a copy, but the Secretary of State said that’s rarely the case.

“Our Division of Business and Charitable Organizations and I were recently made aware of a new misleading mailer trying to take advantage of Tennesseans,” said Secretary Hargett. “The look and language used on this mailer tries to trick borrowers into paying an excessive amount for a document they will most likely never need.”

Anyone who gets the mailer is asked to report it to the Division of Business and Charitable Organizations (615-741-2286 or email at TNSOS.CERT@tn.gov) and the Tennessee Attorney General’s office (615-741-3491 or online www.tn.gov/content/tn/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html).

Hargett said UCC-1 financing statements are common in Tennessee, with the Division of Business and Charitable Organizations issuing about 200,000 each year.

If a business or person needs one, it’s just $15 by directly reaching out to the Secretary of State’s Office at 615-741-2286, mail or online at https://tnbear.tn.gov/UCC/Ecommerce/UCCInfoReqInstr.aspx.

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