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By Deal Pack - May 17, 2013
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.
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Advanced Business Computers of America (ABCoA) develops and supports end-to-end software solutions for the subprime finance industry. Since 1983,
we have helped automotive dealerships and finance companies eliminate duplication, remain compliant, and achieve success with dependable, all-in-one software and white glove service and support.
Deal Pack is a complete, all-in-one software ecosystem customizable to your exact needs and scalable to your exact size - helping improve your operations, grow your business,
and solve the challenges you face. Whether you are a finance or sales company, multi-entity or publicly traded company handling BHPH or LHPH, operating or capital leases,
internal or external floor-planning, retail, rentals, consumer loans, origination, or seasoned paper, Deal Pack is the dependable software for mission critical operations.
Deal Pack handles all of your business needs transparently – providing you measurable improvements and complete financial control, saving you time,
increasing your bottom line, and allowing you the freedom to focus on your daily operations. Deal Pack is relied upon by thousands of customers across
all 50 states in the United States and six countries around the world. Customers properly using Deal Pack have never lost an IRS audit.
To learn more about ABCoA, visit www.abcoa.com.