There are two significant benefits that come with an online database. Specifically, it

• Takes away the guesswork. You’ll know, as do other credit providers, what liens are against a property simply by searching the database.
   
• Creates efficiencies. The process as explained by the secretary of state’s office is simple. For $7 and an online application you can post a preliminary lien that indicates you have extended credit against the property. While this is not the actual lien, it does indicate your right to place a lien if the debt is not paid. It is anticipated this process will actually reduce the numbers of actual liens filed, which saves suppliers time and money.

In addition, where your liens are processed will change. The secretary of state’s office will manage the database, so you will no longer file paperwork with the county. This change makes sense since the secretary of state’s office already manages a similar database for UCC filings.

There will be a number of training and education sessions scheduled throughout the summer and fall where you will be able to see how the database will work. However, NACM Heartland members will have an opportunity to see this up close at the Construction Credit Exchange Group meeting at noon on Thursday, May 24 at the Okoboji Bar and Grill in Johnston. Angela Davis from the secretary of state’s office will provide a demonstration, as well as answer any questions you may have. Contact Maggie Bessenbacher at Maggie@nacmheartland.com or 888.222.1447 for more information or to RSVP.

While change always brings some level of challenges, we believe the online registry will benefit credit professionals in the long run. We also expect that there will be few delays in actually implementing the process because it was widely anticipated and much of the development work has been completed.

We’ll update you as we learn more about the database, as well as the training opportunities.

If you have suggestions about articles you'd like to see, email Maggie Bessenbacher with your thoughts!

We had a couple of thoughts as we read this story.

A 1099-c is issued after all collection efforts have failed and the debt is written off. It is our understanding that 1099-c can only be issued within the year the debt is written off.
The 1099-c is still a valuable collection tool. The customer has received a product or service that has not been paid for and the 1099-c is acknowledging that by indicating that it is income.

In USA Today story, credit card companies are sending a 1099-c well after the fact -- up to decades. We don't know any of the specifics, but what we do know that the credit card industry has been hard hit by the last three years. Is this an attempt to shore up bottom lines? Is this something they have always done? Or, it is just on such a wide scale that it's getting notice? Why weren't the consumers notified that as they settled the debt that this would be the end result? We don't know and don't want to speculate. However, it seemed important to emphasize the 1099-c can still be used effectively, particularly if you communicate why it is coming.

If you have questions about using a1099-c or the story, please don't hesitate to contact me at 888.222.1447 or maggie@nacmheartland.com.
 

The disagreement among the various Iowa and federal courts on the correct interpretation of Iowa’s feed lien law has been settled by the Iowa Supreme Court. In the case of Oyens Feed & Supply, Inc. v. Primebank, a decision of major importance to feed suppliers and lenders as well as livestock producers, the Supreme Court ruled on Dec. 30th that that the feed lien is superior to the secured lender’s security interest even though a certified notice of the feed lien is not sent to the lender. Click here for a copy of the Supreme Court’s decision. To read the rest of the story click here:

Just in case you missed it ...

• Recently, the keynote speakers were announced.  To learn more about Jamie Clark and Garrison Wynn, check out the official Credit Congress website at http://creditcongress.nacm.org/.
   
• The silent auction committee is looking for items!  Heightening the hum of activity in the Expo Hall on Monday evening, the NACM Scholarship Foundation hosts its annual Silent Auction. Proceeds from the auction go directly to the Foundation to support its goal of providing financial assistance to credit professionals for educational programs so their gained knowledge can strengthen the profession and business community.  Through the generous donations and purchasing support of conference attendees, the auction has been a successful event, both from financial and networking perspectives for many years. To continue this positive momentum, the Foundation encourages item donations. Each donation is a unique and interesting addition to this event. If you aren’t able to donate, be sure to join us during the Beer & Browse in the Expo Hall to bid on the fabulous assortment of items available.
   
• Early bird registration deadline is March 2!  Register now and save money.