How long must records be kept under the Equal Credit Opportunity Act?

How long must records be kept under the Equal Credit Opportunity Act?

• A. 6 months
• B. 12 months
• C. 24 months
• D. 25 months

Answer: (D)

Under the Equal Credit Opportunity Act (ECOA), records related to credit applications and decisions must be retained for a period of 25 months. This requirement ensures that lending practices are monitored for compliance with fair lending laws. By maintaining these records for 25 months, lending institutions can provide documentation that supports their lending decisions if needed, allowing them to demonstrate that they are adhering to non-discriminatory practices as mandated by the law. Retaining records for this specified duration helps protect consumers and promotes accountability in the lending process.

Under the Equal Credit Opportunity Act (ECOA), records related to credit applications and decisions must be retained for a period of 25 months. This requirement ensures that lending practices are monitored for compliance with fair lending laws. By maintaining these records for 25 months, lending institutions can provide documentation that supports their lending decisions if needed, allowing them to demonstrate that they are adhering to non-discriminatory practices as mandated by the law. Retaining records for this specified duration helps protect consumers and promotes accountability in the lending process.