How to handle a UCC Lien SOP

How to handle a UCC Lien SOP



                                                                 

Standard Operating Procedures (SOP)

Date Created: 04/15/2026

How to Handle a UCC Lien 

Department: 

Cinch Home Services –     Location:  <file location>

Procedure:

How to Handle a UCC Lien

Sub Process:


Preceding Task:


Date Issued:


Revision Date:    


SOP Reference# (From Process Map)

000-004

Description:

How an Area Manager or Associate Area Manager should handle a UCC Lien 

Responsibility:


Frequency:

As needed

Timing:









Overview

A UCC lien (UCC-1 financing statement) is a legal notice filed by creditors to publicly establish a security interest in a borrower's business assets (collateral) for a loan. These consensual liens allow lenders to seize and sell specified equipment, inventory, or all business assets if the borrower defaults, usually lasting five years before renewal.

Process

If a UCC lien is identified, the Legal team will notify you via email that a service company has a lien filed against them. This communication will outline the required actions that must be completed by the Area Manager (AM) or Assistant Area Manager (AAM).

All actions outlined by Legal must be completed immediately. 


Required Actions

  1. Place the account on hold
  1. Update the service company’s account status to On Hold (active or inactive).
  2. Do not assign any new jobs while the account is on hold.
  1. Contact the service company owner The AM or AAM must contact the company owner to:
  1. Notify them that a UCC lien has been received
  2. Explain the updated account status and confirm that no new jobs can be assigned
  3. IMPORTANT: Reinforce the expectation that all currently assigned jobs must be completed to avoid customer disruption, especially for in-progress work.
  1. Reassign jobs if the provider refuses to complete the jobs currently assigned to their company.
  1. Inform them that all current and future payments will be directed to the debt collector unless the lien is formally disputed
  2. Confirm whether legal counsel is involved and collect attorney contact details for the Legal team.


  1. Document the action
  1. Update ServiceBench (SB) notes to clearly state that the account has been placed on hold due to a UCC lien.
  2. Reply to the email notification, including all parties such as the legal team, accounting, and other senior leadership, confirming that the hold has been placed.


Written By:

Trudy-Ann Edwards, Robin Stewart, Hubert Bruhier

Reviewed By


Approved By



SOP Template    

© 2025 Cinch Home Services, Inc.  | A Cross Country Group Company | Proprietary and Confidential     1

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