Under the ECOA, credit applications must be kept on file for how many months after notice of action?

Under the Equal Credit Opportunity Act (ECOA), the requirement is that credit applications must be retained for a specific period after a notice of action is provided. The correct duration is 25 months, which reflects the need for financial institutions to maintain accurate records in case of audits or inquiries regarding lending practices. Retaining these applications helps ensure compliance with fair lending laws and allows organizations to respond effectively to any complaints or investigations regarding potential discriminatory practices.

The retention period aligns with the ECOA's goal of promoting fair and equal access to credit by ensuring that institutions are held accountable for their lending decisions and practices. By requiring a storage duration of 25 months, the ECOA also allows sufficient time for individuals who apply for credit to dispute any adverse actions taken against their application.