Compliance Blog

Posted by Anthony Demangone

As you pore over your risk-based pricing notice procedures, you may come across an interesting discovery.  There really are no record retention requirements spelled out in the final regulation.  So, what is one supposed to do?  How can you prove compliance?

One thought is that a credit union could rely on its policies and procedures, which will spell out how a credit union has decided to provide notices under the rule - assuming it has to provide risk-based pricing notices. I don't think such a stance is unreasonable.  In fact, that is the requirement the Fed created for Regulation E.  Here's the Fed's description of Regulation E's record retention requirements, found in the Staff Commentary, Section .13(b).

A financial institution need not retain records that it has given disclosures and documentation to each consumer; it need only retain evidence demonstrating that its procedures reasonably ensure the consumers' receipt of required disclosures and documentation.

I'm curious to see how others are handling this.  Feel free to leave a comment on the blog with your record retention plans.

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Here are some other items.

• The most recent episode of Current Issues in Credit Unions is available.  So fire up that iPod!
• At Compliance Seminar, a speaker noted that the best risk management guidance document for ACH is OCC 2006-39.  After looking at the document, it is hard to argue against the speaker's statement.
• Leave it to Saturday Night Live to create perhaps the most effective financial literacy tool for consumers that I've ever seen. (Video.)  Keep in mind that your workplace may have a policy on watching videos while at work.  Believe me, though - this one is gold.  Gold, Jerry. Pure gold.