Does FCRA have any record retention requirements for keeping credit report run for employment purposes - whether we hire the person or not? THANKS

Sue,
I don't have an answer for you, but I am glad you asked the question. I would also like to know if FCRA has any record retention rquirements for the "turndown" letters we give a consumer who applies for a deposit account. We currently have the branches give the letter to the consumer who is on "Chex", and have them forward a copy of the letter to Compliance. We can then obtain a list from Chex of all reports made by branch, and compare the letters recieved to that list for FCRA monitoring purposes. However, if we don't need to retain the letters, and the OCC will only look at our policies and procedures to determine compliance, then I would LOVE to discontinue this practice of sending, tracking, filing, retaining, etc. Thanks!
Leslie

[This message has been edited by Leslie (edited 03-19-2001).]

See message above.

[This message has been edited by Leslie (edited 03-19-2001).]

[This message has been edited by Leslie (edited 03-19-2001).]

Leslie,

We file the denial letters we send to deposit customers with the loan denials and keep with the required 24 month period. We find that to be helpful, then if they come back and apply for a loan the lender can check the decline file.

Sue Norton

The retention period for loan denial letters is 25 months.

FCRA does not provide for a recordkeeping requirement in regards to adverse action notices. However, FCRA imposes a two-year statute of limitations on actions to enforce liability arising under the statute. The Commentary states that “users will have evidence that they have taken reasonable steps to comply with this section if they provide written disclosures and retain copies for at least two years.”

"Just my opinion and not a legal opinion or necessarily an opinion of my employer"

The 25-month retention requirement for loan denials is from Reg B.

Just to clarify my previous post. I know there is the 25 month record retention requirement under Reg B for loan denials, however I was referring to the questions on (1)record retention requirements for keeping credit report run for employment purposes and (2)"turndown" letters given to a consumer who applies for a deposit account. Since neither situation (1) nor situation (2) would involve loan denials, the Reg B record retention requirements would not apply. An argument might be made that there could be some credit aspects to a deposit account but even so this would be "incidental credit" under Reg B and not subject to the adverse action notice requirements of Reg B.

"Just my opinion and not a legal opinion or necessarily an opinion of my employer"