I was hoping to get some clarification on Reg DD and retention regarding initial disclosures.

We recently underwent a compliance review performed by a consultant we hired. During the review they requested initial disclosure documents for accounts opened. Some of the samples requested were on accounts opened in 2008 and 2009. They requested copies of the TIS disclosure and rates provided to the customers when they opened their accounts. We do not keep “files” on deposit customers that contain copies of the specific disclosures provided to them at that time. However, we do keep copies of the versions of those documents used at that time. For example, we have a copy of the 2009 Truth in Savings we used during that time, but not a copy of the document we provided to the customer, along with the Privacy Notice and Rate Sheet. The retention under TIS says we must be able to “evidence of compliance with this part for a minimum of two years after the date disclosures are required to be made or action is required to be taken.” My question is whether or not it is standard practice or even a best practice, to retain “files” containing copies of the initial disclosures provided to customers when they open their account and if so, then for how long. Or, is it acceptable to provide versions of the documents that were provided, more specifically to the Rate Sheet, as the Rate Sheet is provided to a customer when the account type they open will accrue interest. No other document we retain captures the rate given at account opening.

Most banks maintain a procedure to ensure that appropriate disclosures are provided. Maintaining historic samples of disclosures used (as opposed to an actual copy per account or customer) is a best practice. The documentation in question -- from 2008 and 09 -- are way outside the two-year retention requirement, and you'd be well within your "rights" to not have them. But since you do have them, you should go ahead and provide them to the consultant.

Your consultant's time (read your money) would be better spent looking at things within the retention period...

If they make a recommendation that your bank adopt a written record retention and destruction program where these documents would be systematically destroyed after two years my opinion of their judgment would rise significantly.

As a consultant, I have to also ask what in the world were they doing or thinking?? Who in their right mind asks for Regulation DD documentation 5-6 years after the fact?? Have you not had an audit or examination since that time??

They are wasting your money.

Perhaps we got distracted by the setting and failed to answer the question you actually asked: Your record retention requirements are satisfied by being able to "recreate" the disclosure for any account opened in the last two years. If you can generate a copy of the disclosure the consumer should have received and the applicable rates for a given day, you are good. You are not required to keep a copy of the disclosure that John Doe actually received.