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#2500 - 06/21/01 06:17 PM Returned Mail
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
We have been receiving returned Adverse Action notices due to incorrect addresses. We keep a copy of the mailed notice for the bank's record retention purposes, but operations wants to know if they have to keep the returned notices. Does anyone have a procedure for this? Thank you.

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General Discussion
#2501 - 06/21/01 07:08 PM Re: Returned Mail
Gotwood Offline
Platinum Poster
Joined: May 2001
Posts: 715
Our procedures are to the recheck the address on the application to the adverse action notice. If this is correct, operations makes a photocopy of the envelope showing the letter was returned and staples it to the back of the AA notice that we retain. This demonstrates to the examiners that we made a good faith effort to notify the customer. So far, no complaints from them.

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#2502 - 06/21/01 07:08 PM Re: Returned Mail
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
Does this not make you suspicious (as in SAR)?

I would put the return mail in the denied loan file and keep it the standard 25 months.

------------------
Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

_________________________
Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#2503 - 06/21/01 07:32 PM Re: Returned Mail
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Yes Al we've had that discussion about why the addresses would be incorrect in the first place. We're looking into the current procedures. Thank you.

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#2504 - 06/22/01 12:36 AM Re: Returned Mail
Lucy Griffin Offline

Diamond Poster
Lucy Griffin
Joined: Nov 2000
Posts: 1,544
The process Dean M describes is a good one. Remember that Regulation B requires record retention and the adverse action notice is one of the records that must be kept. It is probably a good idea to keep a record of the returned status.

The point about suspicious activity is also important to consider. The notice may be returned for legitimate reasons, such as that the customer got a loan somewhere else and moved. But it also may be returned because that wasn't really ever their address. It is certainly worth watching for any patterns.


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