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UCC 1 Filing & Unsecured/Credit Card Debt

Los Angeles, CA |

I am wondering if (in most general cases) when credit card companies issue credit cards to debtors since credit cards are considered unsecured debt does that mean that credit card companies do not file a UCC 1 lien against the debtor in case the debtor defaults on the card?

Attorney Answers 3

Posted

I cannot fathom a reason why a credit card company would ever be allowed to file a UCC Lien. The company is not selling goods to a buyer on credit. It is merely providing you with unsecured credit to buy whatever (i.e., goods, services, etc.)

I am only licensed in the state of Illinois. This is only my general observation about the law and my experiences as a practicing attorney. This is not legal advice and should not be construed as legal advice. This does not create an attorney client relationship. If you wish to obtain legal advice or create an attorney-client relationship, then you should directly contact a lawyer licensed in your state who you believe possesses the knowledge and experience to assist you with your case.

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Posted

I've never seen this or heard of any credit card company doing this, even for very large credit lines or unpaid credit cards. I've represented many consumers and small businesses sued on unpaid credit cards and never seen this issue.

Robert Stempler (please see DISCLAIMER below)
www.StopCollectionLawsuits.com
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NOTICE: The above statements are provided for general information purposes only and are not intended as legal advice or advice of any sort for a specific case or legal matter. If you do not have a signed attorney-client fee agreement with the Consumer Law Office of Robert Stempler, APC ("the Firm"), then until such written fee agreement is provided and signed by both a prospective client and attorney for a particular case, neither Mr. Stempler nor the Firm will represent you nor will they be your attorney in any matter and you remain responsible for retaining your own attorney and for compliance with any and all deadlines and for any statutes of limitations that may pertain to potential claims. Comments made on a public forum, such as Avvo.com, to not have any confidentiality because others may read them. If you desire a private consultation with Mr. Stempler that is confidential, please go to www.StopCollectionLawsuits.com and submit a free eCase Review. The result portrayed for a client was dependent on the facts of that case. Results will differ if based on different facts. The Firm and Mr. Stempler are a debt relief agency. The Firm and Mr. Stempler help people file for bankruptcy relief under the Bankruptcy Code.

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Posted

You are essentially correct. UCC1s perfect security interests ... which the CC Co's do not have. However, if they sue you, obtain a judgment, and record that judgment in your County, that would create a lien against any property you own in that County.

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2 comments

Asker

Posted

What type of lien would that be? Would it be a UCC1 lien or just a regular lien? If the CC or CO obtains a judgment in my county against me how will this show up on my personal credit profile?

Brian Crozier Whitaker

Brian Crozier Whitaker

Posted

It would be a regular, involuntary, non-possessory, judgment lien.

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