Answer:
Answer by Andy Zavoina, BOL Guru:
This is not an infringement as it is prudent to verify the identity of persons doing business with you. There is no real prohibition on the deposit side but there is an inferred prohibition by some regulators on the loan side.
The thought process is that by making a copy of a photo ID you are indirectly collecting monitoring information such as race and gender. This may be directly or indirectly used in the loan approval or collection process. This would be improper. Further, some arguments have been made that by collecting these copies for new accounts, lenders may have access to them.
While reviewing identification is prudent, you should question how often it may be referred to later. Regardless of your regulator's position, you may find it more efficient to annotate that identification was verified and not spend the time making a file copy of it. If you opt to maintain copies, it would be advisable to discuss its importance with your regulators.
Answer:
Answer by Dana Turner, BOL Guru:
Check with your state's driver's license division and get written documentation that you may do this. At least one state forbids the photocopying of its identification documents. Within the next month, you'll find a comprehensive I.D. Checking Guide available in the Banker Store. (This year's publication is being delayed slightly due to the introduction of new IDs in California.) This booklet has samples of all the states' driver's licenses and identification cards -- and shows the anti-counterfeiting measures taken by the states. Then create a policy that states your employees may, indeed, photocopy every applicant's (employment, checking account, savings account, loan, etc.) identification document(s) for identification purposes only. Place your institution's policy regarding discrimination within the photocopy policy as a reminder.
Answer:
Answer by Mary Beth Guard, BOL Guru:
One more thing. You may want to retain copies, if you make them, in a central file for identification purposes only, rather than keeping the ID pictures with the deposit files or, even worse, with credit files. That way, they can be accessed in the event of fraud, but they are not where someone could argue the information reflected on them about race, gender, etc. was used to disciminate in any aspect of credit. (Keep in mind that credit-related issues can come up even on deposit accounts if there is an overdraft protection loan or line of credit feature.)
First published on BankersOnline.com 2/5/01
print
share