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BHPH Credit Applications: How long are you required to keep them on file?
With the ever changing rules and regulations in the automotive industry, it may be difficult at times to keep up with the storage of credit applications. We have been asked many times how long credit applications are to be stored. I have done my research and it comes to no surprise that like most compliance regulations, there’s no cut and dry answer.
According to the Equal Credit Opportunity Act, you only need to keep a signed credit application of file for 25 months regardless if the credit was accepted or denied. This also includes all supplemental information used in evaluating applicants and any written notifications. However, according to the IRS the statute of limitations is 5 years. So it is recommended to retain the signed application for at least 7 years, erring on the side of caution.
Experian, Equifax and TransUnion frequently do audits on dealers who use their products and services. The bureaus typically ask for five deals at random and the failure to comply can result in being placed on a watch list or blacklisted all together.
If you would like more information on Deal Pack’s integration with e-CBI, which offers a fail-safe solution for retaining all of your credit applications, please contact a support representative at 1-800-526-5832.