Photocopied ID, Loan Closings, and ECOA

Answered by:

Question:

Is it a violation of Equal Credit Opportunity Act to require ID from a customer and to then photo copy the customer's ID at the time of closing on a loan or line?

Answer:

No.

And as implementation of 326 of the USA PATRIOT Act nears banks can see that this type of activity will be encouraged.

From the proposal, Section 103.121(b)(3) Recordkeeping.
Section 326 of the Act requires reasonable procedures for maintaining records of the information used to verify a person’s name, address, and other identifying information. The proposed regulation sets forth recordkeeping procedures that must be included in a bank’s CIP. Under the proposal, a bank is required to maintain a record of the identifying information provided by the customer. Where a bank relies upon a document to verify identity, the bank must maintain a copy of the documentthat the bank relied on that clearly evidences the type of document and any identifying information it may contain.

First published on BankersOnline.com 9/2/02