La. Admin. Code tit. 46 § V-7503

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-7503 - Records Retention

A. Each person required to be licensed under this Chapter shall maintain in its offices such books, records and accounts of its lending activities as the commission may prescribe by policy as required to determine whether such licensee is complying with the provisions of this Chapter and the rules, regulations and policies promulgated under the provisions of this Chapter included by not limited to the following:

1. the original or a copy of all documentation signed by the consumer, including but not limited to:

a. note;

b. disclosure statement;

c. financing statement (or equivalent);

2. individual account of the borrower (ledger card or printable computer screen) showing the following:

a. amount of loan;

b. origination date;

c. repayment terms;

d. insurance charges, whether sold in connection with the loan or not;

e. total finance charge;

f. annual contractual percentage rate;

g. date, amount and application of each payment;

h. date and amount of late charges assessed;

i. date and amount of deferral charges;

j. remaining unpaid balance;

k. due date of first payment;

l. all changes in due date of payment;

3. all paid out accounts (including those paid out by renewal) must be filed separately and contain the following:

a. interest rebate;

b. itemized rebate of all insurance premiums;

4. accounts turned over to an attorney for collection:

a. amount paid to attorney, including court costs and attorney fees shown as separate charges;

b. receipt from Clerk of Court, evidencing court costs;

5. accounts reduced to judgment:

a. same documents as for attorney accounts;

b. receipt from Clerk of Court, evidencing any additional court costs;

c. copy of signed judgment;

6. death claims:

a. copy of death certificate;

b. copy of all checks or other evidence of payment received from insurance company in payment of claim;

c. copy of check evidencing payment to secondary beneficiary, where applicable;

7. insurance records:

a. copy of master policy for each type of insurance sold to consumers;

b. copy of rates approved by the Insurance Rating Commission, except for those established by the Louisiana Motor Vehicle Sales Finance Law;

c. lenders will be expected to provide proof of compliance as set out by the commissioner of insurance;

d. proof of remittance of premiums to the previous underwriter;

8. paid out accounts containing errors cited at the previous examination:

a. must be separately filed or identified;

b. must contain proof of correction of error, including copies of refund checks issued to consumers;

9. any other records that may be deemed necessary by the commission to determine compliance with the provisions of the Louisiana Motor Vehicle Sales Finance Law.

B. Period for Retention of Records. All records must be retained for at least two years after the account is paid in full, or any insurance coverage remaining in force after the account has been paid has lapsed, unless required by law to be retained for a longer period. Records are required to be kept indefinitely during the pendency of an investigation or enforcement proceedings involving alleged violations.

C. Variance. After considering the particular facts and circumstances of an individual licensed lender's recordkeeping procedures, and the public interest in promoting the efficiency and effectiveness of compliance examinations, the commission may formally grant a variance to a licensed lender to any requirement in this rule.

D. Such books, records, and accounts shall be maintained separate and apart from any other business which the agency is involved. If the licensee's books, records, and accounts are located outside the state, the licensee, at the commission's option, shall make them available to the commission at a location within the state convenient to the commission, or pay the reasonable and necessary expenses for the commission or its representatives to examine them at the place where they are maintained.

La. Admin. Code tit. 46, § V-7503

Promulgated by the Office of the Governor, Motor Vehicle Commission, LR 31:924 (April 2005).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:969.40(D).