Q: Under TISA and the NCUA’s regulation, 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 707.9—Enforcement and Record Retention
(c) Record Retention
1. Evidence of required actions. Credit unions comply with the regulation by demonstrating they have done the following:
i. Established and maintained procedures for paying dividends and providing timely disclosures as required by the regulation, and
ii. Retained sample disclosures for each type account offered to members, such as account-opening disclosures, copies of advertisements, and change-in-term notices; and information regarding the dividend rates and annual percentage yields offered.
2. Methods of retaining evidence. Credit unions 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). Credit unions must retain copies of all printed advertisements and the text of all advertisements conveyed by electronic or broadcast media, and newsletters.
3. Payment of dividends. Credit unions must retain sufficient rate and balance information to permit the verification of dividends paid on an account, including the payment of dividends on the full principal balance.
ADDITIONAL INFORMATION –