A new law will offer Minnesotans protection from bad actors who maliciously use state resources.
Effective Aug. 1, 2022, the secretary of state’s office will have the authority to reject – at the time or after the fact – clearly fraudulent Uniform Commercial Code lien filings meant to harass or intimidate.
The office regularly handles UCC filings, which are legal notices that the filer has a security interest against a debtor.
On occasion, claims are fraudulent and meant to retaliate, harass, or lay the groundwork for further fraud. The false claims are often filed against corrections officers, law enforcement personnel, judges or other public officials.
The new law allows the secretary of state’s office to set aside claims that fall under certain parameters; the false filings often include common characteristics such as imprecise addresses.
Filers can appeal if they believe their claim was improperly rejected, and will keep their place in line as creditors if reinstated.
If a filing is accepted and later shown to be fraudulent, there will be a process to remove the claim without going to court.
Rep. Athena Hollins (DFL-St. Paul) and Sen. Andrew Mathews (R-Princeton) sponsor the law.