Purging credit card applications

[SweetPolly]

In discovery I requested a copy of the credit card application/contract. I was told by the OC lawyer that federal law allows credit card banks to purge applications from their files after 24 months. Is this true?

[1stStep]

They have the option of purging it...

[legaleagle]

Not really, they try this all the time. Regulation Z mandates that lenders keep certain records for 24 months so as to comply with Truth in Lending auditing requirements. That means they have to prove to the government that they provided the necessary disclosures to the consumer. There is no language in the statute that mandates destruction of records. They are free to keep them as long as they want, but they don't bother. They think the average consumer will be bulldozed by their deliberate misstatement of what the regulation says. They state in their complaints that "defendant applied for and was issued a credit card....." then when you ask for the app, they don't have it. "Take our word for it" doesn't fly. Check my recent posts for this, if they issued a card with no application THEY have violated Regulation Z 226.12. I think the statute they referenced is 226.25, don't hold me to that, check my posts.

[1stStep]

Yes - per TILA, they HAVE to keep them for 24 months, after that, they can do whatever they want with them.

Many larger banks purge since storage at one point was expensive. But with the price of digital storage getting cheaper by the day, expect more banks to hold onto all applications indefinitely.

[legaleagle]

Yes - per TILA, they HAVE to keep them for 24 months, after that, they can do whatever they want with them.

Many larger banks purge since storage at one point was expensive. But with the price of digital storage getting cheaper by the day, expect more banks to hold onto all applications indefinitely.

I've noticed in my case law research that in the "fresher" cases from maybe 2005 on, they are able to come up with the application. The problem they have with older accounts is that millions of them were unsolicited. I used to find a new CC in the mail every week. All you had to do was activate it. No applications, no cardholder agreement, nothing. They flooded the market with these right after they moved to their new locations where they could legally rob everybody blind. Another problem they have is that this "use and acceptance" garbage is not statutory in every state. In my state, all lending and extension of credit is under the authority of the banking commission. We have no such language in the code. Even if we did, the banking commissions nationwide have absolutely no authority over national banks when it comes to interest disputes. And since they only regulate banks and not consumers, the statute goes out the window when they try to invoke it, in my humble opinion. Also, the national banking act does not allow exportation of contract law.

[peterjhon]

In purging credit card transaction you can remove transaction .you can remove record for a specific data range, a specific transaction status, employee who no longer works for the company. You can also remove duplicate transaction accidentally upload to the table.

[jazzalbart]

I think you should apply online for credit card applications. An advantage of applying for credit cards online is the fact that you can immediately compare different offers in real-time and select the one that suits you the best.