Liens.

Full Picture of Assets and Liabilities

A lien, also known as an UCC filing, is essentially an agreement based on a loan. There are an abundance of different types of liens an individual can receive from a lender. The borrower presents collateral, and the lender files a lien stating they have legal right to the asset in case of a default.

Most often, liens are filed on assets like property and cars, or for tax purposes, but are not limited to those categories. Finding a lien on an applicant is not immediately adverse information. In fact, most people will have at least one lien filed on them at a time, usually for their car or property payment.

Lien searches, or lien lookups, can help you determine the trustworthiness of an applicant and, to a degree, how that individual handles finances. If you find an applicant with multiple liens, but a solid credit history, that can ultimately increase confidence in the hire. A lien becomes adverse information when the individual has not paid back the loan within the allotted time frame. It is then referred to as a judgment.

Judgments are considered adverse information immediately by our investigative team at CI. Lien information can be spread throughout several different databases, so it is best practice to partner with a professional to ensure your hiring team gets all available information on your applicants.