What must a credit union file when a loan secured by consumer goods is paid in full?

When a loan secured by consumer goods is paid in full, the correct procedure is to file a termination statement within one month. This termination statement serves as a formal acknowledgment that the debt has been satisfied and that the lender no longer has a security interest in the collateral. It is essential for ensuring that the borrower's credit report accurately reflects the status of their obligations and that the secured goods are free from any claims by the credit union.

This process protects both the borrower and the lender by clarifying that the loan has been fully repaid, which helps prevent any future disputes regarding ownership of the goods or lingering debts. Compliance with filing a termination statement is crucial for credit unions to maintain accurate records and uphold consumer rights.