A CFL licensee closes a loan in March 2024 and asks how long the books, accounts and records on it must be kept. What minimum preservation period applies to these CFL records?
Correct Answer
C) At least 3 years, and producible to the DFPI within the required time
A CFL licensee preserves its books, accounts, records and files for at least 3 years, and records kept electronically or off site have to be producible to the regulator within the time the rules allow. Other choices: 1 year is a Regulation Z period for particular documents; destroying at repayment defeats examination; and 7 years is a tax convention rather than this rule. Source: Cal. Fin. Code § 22156
Why This Is the Correct Answer
A CFL licensee preserves its books, accounts, records and files for at least 3 years, and records kept electronically or off site have to be producible to the regulator within the time the rules allow. Other choices: 1 year is a Regulation Z period for particular documents; destroying at repayment defeats examination; and 7 years is a tax convention rather than this rule. Source: Cal. Fin. Code § 22156
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