For how many months must ECOA records be retained?

Under the Equal Credit Opportunity Act (ECOA), records pertaining to credit applications must be retained for a period of 25 months. This retention period ensures compliance with the regulations that govern fair lending practices, allowing for effective monitoring and enforcement of the law.

The 25-month requirement specifically helps to protect applicants by ensuring that their information is available for review in cases where discriminatory practices may be alleged. It also aids lenders in maintaining accurate records, facilitating audits and reviews that may take place post-application.

Maintaining records for the full 25 months is crucial for both regulatory compliance and for fostering trust between lenders and borrowers, as it provides a clear documentation trail during the lending process.