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An expertly-staffed hotline, federal regulatory tools, policies and procedures, and unlimited reviews for all sizes of community banks across the U.S. — the only all-inclusive banking compliance advisory. Compliance Hub’s over 1800 products and tools support 48 separate bank compliance areas –an unlimited-access Bank Compliance Library – and conforms to the most recently published federal banking rules and regulations. Whether you are building institutional exam-readiness or a bank compliance program, C/A has all the resources, access, and availability for one membership subscription. Co-owned by the Virginia Bankers Association and 37 other state bankers associations across the country. Contact C/A’s Membership Development Team at (888) 353-3933 or at: info@compliancealliance.com. To learn more about C/A’s new Virtual Compliance Officer service or call (833) 683-0701.

Compliance Alliance Featured Q&A

Question:

How long should banks keep records of consumer complaints? Our policy says two years or since the last exam, but our state law allows up to seven years. Given the risk, should we extend the retention period?

Answer:

There’s no single, definitive federal regulation that prescribes a universal retention period for consumer complaints. Instead, the appropriate retention period for a consumer complaint will generally be governed by the type/content of complaint received – so, for example, a complaint regarding an unauthorized electronic fund transfer may most appropriately follow Regulation E’s record retention rules, whereas a complaint about an inaccurate deposit account disclosure would fall within Regulation DD’s record retention scope.

Under most of the prudential regulators’ compliance examination procedures, it appears as though banks are expected to retain documentation of consumer complaints and their resolution as part of their Compliance Management System (which, in practice, could mean retaining documentation of complaints and their resolution over at least one or more exam cycles). To that end, ultimately, there may be an element of risk-based decision making in setting the precise period for the records received, reliant in part upon its own policies and procedures.

It should also be noted that most states impose general recordkeeping requirements. For instance, North Dakota law requires banks to preserve account and file records for up to six years (N.D.C.C. § 6-08-23). Other states set similar ranges, and a common range is three to seven years. As with any state-specific determination, a friendly call/review with bank counsel is recommended.

Our Complaints Toolkit has several additional resources on the matter, and whenever in need of guidance on retention matters, our Record Retention Schedule Cheat Sheet breaks down retention schedules by department, document type, and purpose.

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