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#2217985 - 07/18/19 07:12 PM Credit Card Application Record Retention
CU3840 Offline
Junior Member
Joined: Jun 2019
Posts: 36
Need some guidance on credit card record retention - here is a scenario: Reg B 1002.12(b) states applications must be kept on file for 25 months. Business keeps all applications for 7yrs. Business has a detailed policy to destroy applications after 7yrs. What is the risk from a regulator perspective if we are found to have applications on record for more than 7yrs? Can they all be kept on disk/microfilm indefinitely?

Reg B 12CFR 1002.12b
(b) Preservation of records. (1) Applications. For 25 months (12 months for business credit, except as provided in paragraph (b)(5) of this section) after the date that a creditor notifies an applicant of action taken on an application or of incompleteness, the creditor shall retain in original form or a copy thereof:

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#2218039 - 07/19/19 03:15 PM Re: Credit Card Application Record Retention CU3840
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,400
Here is my personal opinion on this. I would follow the record retention rules by the regulation and/or state law. Once this date has passed I would destroy the documents. The regulators will not say anything if you are maintaining the records for a longer period of time. For me the main reason to destroy after the retention period is so they could not be subpoenaed into a lawsuit. If you are maintaining them I would think an attorney would request them.

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#2218077 - 07/19/19 06:10 PM Re: Credit Card Application Record Retention CU3840
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
However, you ask "can they be kept". Yes, they can. Should you keep them indefinitely? osucpa provides good advise. I recommend not keeping documents beyond the retention period too.

However, make sure you look beyond Reg B. There are many other regulations that may apply that require retention beyond 12/25 months. For instance, BSA & RESPA are 5 years. HMDA is 3 years following submission. You have to look at all of the regs the type of application is subject to.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#2218230 - 07/23/19 06:41 PM Re: Credit Card Application Record Retention David Dickinson
CU3840 Offline
Junior Member
Joined: Jun 2019
Posts: 36
thanks all!

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