Under the Equal Credit Opportunity Act (ECOA), how long must records be kept?

Under the Equal Credit Opportunity Act (ECOA), how long must records be kept?

• A. 12 Months
• B. 25 Months
• C. 36 Months
• D. 60 Months

Answer: (B)

Under ECOA, lenders must retain records of credit applications for twenty-five months from the date the application is received. This retention period ensures there’s documentation to verify fair lending practices and to support any regulatory review or dispute related to discrimination. The kept records generally include the application itself, notices of action taken, the date of the action, and the rationale for the decision. The clock starts when the application is received, so even if an application is denied or withdrawn, it’s included if a complete application was received. This twenty-five-month window provides a sufficient audit trail; shorter periods wouldn’t give regulators enough history, while longer periods aren’t required by ECOA.

Under ECOA, lenders must retain records of credit applications for twenty-five months from the date the application is received. This retention period ensures there’s documentation to verify fair lending practices and to support any regulatory review or dispute related to discrimination. The kept records generally include the application itself, notices of action taken, the date of the action, and the rationale for the decision. The clock starts when the application is received, so even if an application is denied or withdrawn, it’s included if a complete application was received. This twenty-five-month window provides a sufficient audit trail; shorter periods wouldn’t give regulators enough history, while longer periods aren’t required by ECOA.