[Code of Federal Regulations]
[Title 12, Volume 2, Parts 200 to 219]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR202.12]

[Page 27-28]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 202--EQUAL CREDIT OPPORTUNITY (REGULATION B)--Table of Contents
 
Sec. 202.12  Record retention.

    (a) Retention of prohibited information. A creditor may retain in 
its files information that is prohibited by the Act or this regulation 
in evaluating applications, without violating the Act or this 
regulation, if the information was obtained:
    (1) From any source prior to March 23, 1977;
    (2) From consumer reporting agencies, an applicant, or others 
without the specific request of the creditor; or
    (3) As required to monitor compliance with the Act and this 
regulation or other Federal or state statutes or regulations.
    (b) Preservation of records--(1) Applications. For 25 months (12 
months for business credit) after the date that a creditor notifies an 
applicant of action taken on an application or of incompleteness, the 
creditor shall retain in original form or a copy thereof:
    (i) Any application that it receives, any information required to be 
obtained concerning characteristics of the applicant to monitor 
compliance with the Act and this regulation or other similar law, and 
any other written or recorded information used in evaluating the 
application and not returned to the applicant at the applicant's 
request;
    (ii) A copy of the following documents if furnished to the applicant 
in written form (or, if furnished orally, any notation or memorandum 
made by the creditor):
    (A) The notification of action taken; and
    (B) The statement of specific reasons for adverse action; and
    (iii) Any written statement submitted by the applicant alleging a 
violation of the Act or this regulation.
    (2) Existing accounts. For 25 months (12 months for business credit) 
after the date that a creditor notifies an applicant of adverse action 
regarding an existing account, the creditor shall retain as to that 
account, in original form or a copy thereof:
    (i) Any written or recorded information concerning the adverse 
action; and
    (ii) Any written statement submitted by the applicant alleging a 
violation of the act or this regulation.
    (3) Other applications. For 25 months (12 months for business 
credit) after the date that a creditor receives an application for which 
the creditor is not required to comply with the notification 
requirements of Sec. 202.9, the creditor shall retain all written or 
recorded information in its possession concerning the applicant, 
including any notation of action taken.

[[Page 28]]

    (4) Enforcement proceedings and investigations. A creditor shall 
retain the information specified in this section beyond 25 months (12 
months for business credit) if it has actual notice that it is under 
investigation or is subject to an enforcement proceeding for an alleged 
violation of the act or this regulation by the Attorney General of the 
United States or by an enforcement agency charged with monitoring that 
creditor's compliance with the act and this regulation, or if it has 
been served with notice of an action filed pursuant to section 706 of 
the Act and Sec. 202.14 of this regulation. The creditor shall retain 
the information until final disposition of the matter, unless an earlier 
time is allowed by order of the agency or court.
    (5) Special rule for certain business credit applications. With 
regard to a business with gross revenues in excess of $1,000,000 in its 
preceding fiscal year, or an extension of trade credit, credit incident 
to a factoring agreement or other similar types of business credit, the 
creditor shall retain records for at least 60 days after notifying the 
applicant of the action taken. If within that time period the applicant 
requests in writing the reasons for adverse action or that records be 
retained, the creditor shall retain records for 12 months.
    (6) Self-tests. For 25 months after a self-test (as defined in 
Sec. 202.15) has been completed, the creditor shall retain all written 
or recorded information about the self-test. A creditor shall retain 
information beyond 25 months if it has actual notice that it is under 
investigation or is subject to an enforcement proceeding for an alleged 
violation, or if it has been served with notice of a civil action. In 
such cases, the creditor shall retain the information until final 
disposition of the matter, unless an earlier time is allowed by the 
appropriate agency or court order.

[Reg. B, 50 FR 48026, Nov. 20, 1985, as amended at 54 FR 50486, Dec. 7, 
1989; 62 FR 66419, Dec. 18, 1997]