Q: Under TISA and Reg. DD, what are the record retention requirements?
A: The requirement is to maintain evidence of compliance for a minimum of two years after the date disclosures are required to be made or action is required to be taken.
The Official Staff Interpretations related to record retention offers the following clarifications:
Section 1030.9—Enforcement and Record Retention
(c) Record retention.
1. Evidence of required actions. Institutions comply with the regulation by demonstrating that they have done the following:
i. Established and maintained procedures for paying interest and providing timely disclosures as required by the regulation, and
ii. Retained sample disclosures for each type of account offered to consumers, such as account-opening disclosures, copies of advertisements, and change-in-term notices; and information regarding the interest rates and annual percentage yields offered.2. Methods of retaining evidence. Institutions must be able to reconstruct the required disclosures or other actions. They need not keep disclosures or other business records in hard copy. Records evidencing compliance may be retained on microfilm, microfiche, or by other methods that reproduce records accurately (including computer files).
3. Payment of interest. Institutions must retain sufficient rate and balance information to permit the verification of interest paid on an account, including the payment of interest on the full principal balance.
ADDITIONAL INFORMATION –