I am having a hard time trying to decide if applications are truly withdrawn or denied for incompletemess. My situation is say
I recieve an application our banks sends out a need letter (generic) not the Reb G one. In going thorugh the file there is a notation say 2 months later customer withdrew. None of the items requested are in the file. Sould this be a denial for incompleteness or withdrawn.

If your letter does not follow the notice of incompleteness requirements found in 202.9 then you have a denial for incompleteness.

In order the application to be treated as withdrawn, it has to be expressly withdrawn by the applicant.

OSC 202.9 Comment 2. Expressly withdrawn applications. When an applicant expressly withdraws a credit application, the creditor is not required to comply with the notification requirements under § 202.9.

Losing touch with the applicant does not equal withdrawal. I would recommend that you move to using the notice of incompleteness.

You have two problems here - the applications should have be treated as denied for incompleteness and you have also violated the 30 day time frame in which to make a decision after receipt of the application.