We have a business who applied for a loan in excess of $1,000,000 and was declined. The "business" has requested their financials be returned. We made a copy and returned the original. They do not want us to retain any copies and are insisting we return the copy we made.

Are we required by state law to return these financials if the applicant requests us to? I don't think we would be, since we would no longer have some of the information used to base our decision for decline.

The Federal Law requires that you maintain all supporting documents used in the credit decision for 12 months.