Relating to filing of fraudulent financing statement

SB 837 amends West Virginia law to strengthen protections against fraudulent financing statements, which are legal documents used to secure loans against property. It requires debtors who believe a fraudulent statement was filed to submit an affidavit to the Secretary of State, along with written notice to all affected secured parties (lenders or creditors) at least 30 days before filing. The bill gives the Secretary of State new authority to investigate suspected fraud, reject invalid filings, and request additional documentation, while increasing penalties for violations to include fines, jail time (up to 5 years for repeat offenses), and civil liability for damages up to $10,000 plus attorney fees. This directly affects debtors, creditors, and the Secretary of State’s office by creating a clearer process to challenge and prevent fraudulent filings.