Creditors Must Retain for 25 Months: Exceptions | CRCM Exam Answer

Creditors Must Retain for 25 Months: Exceptions

Prev Question Next Question

Question

Creditors must retain for 25 months after the date that an offer of credit is made (12 months for business applicants with gross revenues of $1 million or less) the following items EXCEPT:

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B

The question pertains to the retention period for certain items that creditors must keep after making an offer of credit. The specific regulation being referred to is likely the Fair Credit Reporting Act (FCRA), which requires that creditors retain certain records for a certain period of time.

The FCRA requires that creditors retain the following items for 25 months after the date that an offer of credit is made:

  1. The text of any prescreened solicitation: This refers to any offer of credit that was sent to a consumer based on a credit report or other criteria established by the creditor.

  2. All other written information concerning the applicant: This includes any application materials, correspondence, or other written records related to the application for credit.

  3. The list of criteria used to select recipients: This refers to the criteria that the creditor used to determine which consumers would receive the offer of credit.

However, the question asks which item creditors do not need to retain for the specified time period. The answer is D. Any record of complaints regarding the solicitation.

While it may be advisable for creditors to keep records of complaints, there is no specific requirement under the FCRA to retain such records for a specified period of time. Therefore, creditors are not required to keep records of complaints for 25 months after the date that an offer of credit is made.

It is important to note that the retention requirements under the FCRA are intended to ensure that consumers have access to information about the credit offers they receive and that the credit-granting process is fair and transparent. Failure to comply with these requirements can result in significant penalties and legal liabilities for creditors.