NASHVILLE, Tenn. — Tennessee Secretary of State Tre Hargett is warning Tennesseans about a scam that involves Uniform Commercial Code (UCC) documents.
The scam involves receiving an "official-looking" piece of mail from the TN UCC Statement Service, incorrectly implying that businesses or people must obtain a copy of a UCC-1 financing statement filed against them, according to Hargett.
“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,” Hargett said. “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 UCC is a set of laws that governs 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, according to Hargett.
The Secretary of State said these financing statements are common in Tennessee, however, this scam is trying to get residents to pay $107 to the TN UCC Statement Service to request a copy of their financial statement on behalf of a debtor. The scam implies recipients must obtain a copy of the UCC-1 financing statement, which is rarely the case, according to Hargett.
The Secretary of State’s Division of Business and Charitable Organizations issues around 200,000 UCC-1 financing statements every year, Hargett said. If you want a copy of a UCC-1 financing statement, you can request one directly from Hargett's office for just $15.
If you receive this scam in the mail, you're encouraged to report this activity to the Division of Business and Charitable Organizations and the Tennessee Attorney General’s office.