Business owners facing aggressive UCC lien collection tactics can often feel overwhelmed and stressed. The financial strain can be significant, and the situation can seem hopeless. If you are a business owner contemplating filing a dispute against a lender’s collection tactics, how can documentation help your case?
Types of documentation to gather
Having thorough documentation in your UCC lien collection dispute can help you prove the extent of the harm that the lender’s collection tactics caused to your business. Among the types of documentation to gather are:
- UCC financing statement: If you have not received this, request a copy from the lender. This is the public notice of their security interest in your business’s assets. Reviewing the UCC financing statement can help you spot inaccuracies and know the priority of the lien.
- Proof of all payments: Keeping a record of the amounts you gave to the lender can prevent them from making false claims about your merchant cash advance (MCA) payments.
- Communication with the lender: Your communication with the lender, including emails, letters, call logs and text messages, can help you establish a pattern of their behavior. This can also contradict the lender if they make inaccurate statements about your conversations.
- Signed agreements: All the agreements you signed with the lender can help you clarify the terms of the transaction. Having these can also prevent the lender from making misleading claims about your MCA.
Additionally, it is important to gather the notices the lender sent to your suppliers and the documentation of their communication. These documents can help you prove the lender’s aggressive approach to collection.
Safeguarding your rights and securing your business
Having all relevant documentation in place can give you a sense of control over your UCC lien problem. However, going through the dispute process can be intimidating, whether you decide to file a complaint or a lawsuit. By seeking legal counsel, you may receive the guidance you need as you strive to safeguard your rights and secure your business.