Tennessee Secretary of State Tre Hargett is issuing a new warning to all Tennesseans about a scam involving Uniform Commercial Code (UCC) documents.
As part of the scam, citizens receive an official-looking mailer from TN UCC Statement Service, incorrectly implying businesses or individuals must obtain a copy of a UCC-1 financing statement filed against them.
“Our Division of Business and Charitable Organizations and I were recently made aware of deceptive mail circulating within some communities targeting the good faith of Tennesseans and our businesses,” said Secretary Hargett. “The format and language used on the suspicious mailer is an attempt to trick borrowers into paying excessive costs to obtain a document they will likely never need.”
The Uniform Commercial Code (UCC) is a comprehensive set of laws governing sales or other commercial transactions. A UCC-1 financing statement is a legal form that creditors use to give notice that they have a lien on an asset of a debtor.
While these financing statements are common in Tennessee, the deceptive mail pieces attempt to compel Tennesseans to pay $107 for the TN UCC Statement Service to request a copy of their financial statement on behalf of a debtor. These mailers imply recipients must obtain a copy of the UCC-1 financing statement, which is rarely the case.
“I encourage Tennesseans to be wary of any mailings they receive from third-party companies that say they will work with my office on your behalf,” said Secretary Hargett. “These organizations are not affiliated with or authorized by us in any way. They charge excessive fees for a document you will likely never need; if you want an official document, they are easily obtainable through our office.”
