Keep Consumer Adverse Action for Five Years?

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Question:

Regarding Adverse Actions - Everything we see says we need to keep consumer ones for 25 months. Our compliance person, now says we need to keep them for 5 years because of the Consumer Financial Protection Bureau. Have you heard anything about this?

Answer:

Dodd-Frank changed the statute of limitations to commence action against a creditor in ECOA from 2 years to 5 years. Regulation B, which implements ECOA, has not yet been amended to reflect that change but retaining records for at least the statute of limitations would be prudent.

First published on BankersOnline.com 10/22/12