For consumer credit card applications, the adverse action notice, along with supporting documentation, must be retained for a minimum of 36 months. This duration aligns with regulatory requirements established by the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA) in the United States.
Correct option is B.
For consumer (non-business) credit card applications, the adverse action notice, along with all supporting documentation, must be retained according to regulations established by the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA) in the United States. The correct duration for retaining such records is outlined by these regulations.
The accurate answer is B. 36 months. The FCRA requires that records related to credit transactions, including adverse action notices, be retained for a minimum of 25 months from the date of the adverse action. However, it is advisable to keep these records for a longer period to ensure compliance and to address any potential legal or regulatory requirements that may arise.
Adverse action notices are critical in informing consumers about the reasons for unfavorable credit decisions. Retaining these records for 36 months allows financial institutions to demonstrate compliance with fair lending laws and provides a historical record for audit purposes. Proper documentation helps protect both consumers and creditors and supports transparency in the credit application process.