(A) Records must be kept current and be
available at a registered location at all times during normal business hours
for review by the superintendent. Records must be legible and maintained in a
type size that is clearly readable without magnification and in conformity with
any specific typeface or font size that may be required by state or federal
law. Except when otherwise provided by federal or state law, records must be
maintained in English. When records are allowed to be in a language other than
English, the registrant or qualified exempt entity, at its expense, shall be
responsible for providing the superintendent with a full and accurate
translation. For purposes of this rule, "current" means within thirty
days from the date of the occurrence of the event required to be recorded. A
registrant shall keep and preserve the following records:
(1) A sortable electronic
spreadsheet which discloses the following fields of information:
(a) Principal borrower's name;
(b) Principal borrower's address;
(c) Loan or account number;
(d) Type of the security for the loan;
(e) Date of loan;
(f) Amount financed;
(g) Date finance charges begin to accrue;
(h) Loan origination charge;
(i) Itemization of all additional fees or
charges;
(j) Principal amount of the loan;
(k) Scheduled or precomputed interest;
(l) Number of payments;
(m) Contractual rate of interest;
(n) Payment amount;
(o) Types and amounts of credit related
insurance;
(p) Default charge
(q) Check collection charge;
(r) Any points charged to the borrower;
(s) Any charges for prepayment of the loan;
(t) The NMLS number of the registrant/exempt entity, if
applicable;
(2) Payment histories for
each outstanding loan and each loan paid in full. The payment history shall
disclose the following information:
(a) Principal borrower's name
(b) Loan or account number; and
(c) A chronological entry of all debits, credits, payments
and charges received, assessed or disbursed in connection with the loan,
recorded thereon in an identifiable manner in order to show the actual date of
receipt, assessment or disbursement and the balance due on the loan or
account.
(3) A file for each
principal borrower which contains copies of all documents related to the loan
transaction from origination through the final entry on the record. If there
are multiple loan transactions with the same borrower, every loan transaction
in the file must have a unique loan or account number.
(4) A sortable electronic spreadsheet of
all loans in collection litigation which shall include the following fields of
information:
(a) Principal borrower's name;
(b) Loan or account number;
(c) Date litigation proceedings were
initiated;
(d) Name of court where proceedings were
initiated;
(e) Indicate whether a final judgment has been entered, and
if so include the following:
(i) Date of
judgment;
(ii) Amount of judgment;
and
(iii) The judgment rate
of interest.
(f) In addition to the spreadsheet of litigation, copies of
the complaints, court orders, settlements and judgments must be maintained in
the principal borrower's file. In cases of garnishment or attachment,
copies of all notices served on employers and amounts collected must be
maintained in the principal borrower's file. The registrant must provide
any additional court documents upon the request of the
superintendent.
(5) A sortable electronic spreadsheet of
all loans in repossession and foreclosure which shall include the following
fields of information:
(a) Principal borrower's name;
(b) Loan or account number;
(c) Type of security foreclosed, attached, replevied,
repossessed or surrendered;
(d) Date of repossession or foreclosure;
(e) Date of sale of the security;
(f) Gross amount received from the sale of the
security;
(g) The amount of money applied to the outstanding loan
balance; and
(h) In addition to the spreadsheet of loans in repossession
and foreclosure, copies of all repossession and foreclosure legal documents and
other records, including bills for all expenses shall be maintained in the
principal borrower's loan file. In instances where the security is offered
for private sale, there must be in the principal borrower's file not less
than three bona fide written bids or appraisals in order to establish that the
terms of the sale were commercially reasonable to the borrower. Where the
security is offered for private or public sale, the sale must be consummated in
compliance with the provisions of sections 1309.610, 1309.611, 1309.615,
1309.617, and 1309.624 of the Revised Code.
(6) A sortable electronic
spreadsheet of all loans upon which a credit life claim has been paid by the
insurer which shall include the following fields of information:
(a) Principal borrower's name;
(b) Loan or account number;
(c) Date of death;
(d) Total amount paid by the insurance claim;
(e) Amount applied to the principal borrower's
account; and
(f) In addition to the spreadsheet of loans upon which a
credit life claim has been paid, a copy of the death certificate and
documentation of all funds received or paid pursuant to the credit life claim
shall be maintained in the principal borrower's file.
(7) Each registrant conducting business
as a lender shall maintain a log for business conducted with brokers. This log
shall be kept in chronological order and shall contain the following
information:
(a) Amounts of fees paid to brokers;
(b) Names and addresses of brokers; and
(c) Dates of transactions with brokers.
(8) To the extent such records have been
created in the course of the registrant's operations, any contracts with
third party vendors relating to lending services, any policy or procedures
manuals relating to lending services, and any training materials pertaining to
loans made under sections 1321.51 to 1321.60 of the Revised Code.
(9) A file of all
advertisements.
(10) Histories of nonpublished indices
used to establish interest rates for variable rate loans maintained for two
years from date of usage.
(B) Where electronic records are
required, a licensee may retain paper records as well. Where electronic records
are required, the superintendent may, for good cause, allow a licensee to
retain paper records in lieu of the electronic records required by this
rule.
(C) In accordance with division (A) of section 1321.55 of
the Revised Code, a registrant shall keep and preserve records pertaining to
loans made under division (A)(1) of section 1321.52 of the Revised Code for at
least two years after the final entry on the record. The final entry on the
record occurs when the loan is paid in full, charged off as uncollectable,
sold, transferred or assigned to another, or discharged or otherwise settled by
a final order issued in litigation governing the loan transaction.
Notwithstanding the third sentence in division (A) of section 1321.55 of the
Revised Code, a registrant shall keep and preserve records pertaining to
residential mortgage loans in accordance with 12 C.F.R. 1026.25(c)(3) as in
effect on November 30, 2016. The retention period for advertisements commences
from the date the advertisements are published, broadcast, or
disseminated.
(D) A registrant shall segregate the records pertaining to
business conducted pursuant to sections 1321.51 to 1321.60 of the Revised Code
from all other business records.
(E) A registrant shall notify the superintendent of a
change of location of its records pertaining to business conducted pursuant to
sections 1321.51 to 1321.60 of the Revised Code no later than five business
days after the change.
(F) Where a registrant maintains
electronic records in compliance with this rule, and those records are located
outside of the state of Ohio, the registrant shall make the electronic records
available to the division of financial institutions upon request, within the
time frame provided by the division. The electronic records may be uploaded to
a secure server for the purpose of the division conducting an examination of
the registrant.
(G) In the event electronic records, books, records, data
or documents of a registrant are located outside Ohio, and the superintendent
determines that an in person examination is necessary, the registrant shall be
required to pay the costs of the examination of the registrant outside the
state of Ohio, including the proportionate cost of the salaries of division of
financial institutions employees who conduct the examination. If the
superintendent requests, the registrant shall advance to the superintendent the
superintendent's estimate of the cost of the examination, with any
unconsumed portion to be returned to the registrant. The registrant shall pay
the cost of its examination, or any balance of the cost of its examination in
the case of a registrant that advanced the estimated cost of its examination,
within fourteen days after receiving an invoice for payment.
(H) Any records maintained on an electronic storage media
or system shall meet all of the following requirements:
(1) The electronic
storage media or system must preserve the records in a non-rewritable,
non-erasable format;
(2) The electronic
storage media or system must verify automatically the quality and accuracy of
the storage media recording process;
(3) The electronic storage media or
system must have the capacity to readily download indices and records preserved
on the electronic storage media or system to any medium acceptable to the
superintendent;
(4) Acceptable facilities and appropriate
equipment shall, at all times during normal business hours, be available to the
superintendent for immediate, easily readable projection or production of
electronic storage media or system images and for producing easily readable
images;
(5) Immediate facsimile enlargement shall
be available upon the superintendent's request;
(6) A duplicate copy of the electronic
record stored on any electronic media or system for the time required must be
stored separately from the "original" electronic record;
(7) The electronic storage media or
system must organize and index accurately all information maintained on both
the original and duplicate storage media or system. At all times, a registrant
must be able to have indices of the electronic records being stored available
for examination by the superintendent. Each index must also be duplicated and
the duplicate copies must be stored separately from the original copy of each
index. Original and duplicate indices shall be preserved for the time required
for the indexed records;
(8) A registrant must have in place
providing for accountability regarding inputting of records and inputting any
changes made to every original and duplicate record maintained and preserved.
At all times, a registrant shall have the results of the audit system available
for examination by the superintendent. The audit results shall be preserved for
the time required for the audited records;
(9) All information necessary to access
records and indices stored on the electronic storage media or system, a copy of
the physical and logical file format of the electronic storage media or system,
the field format of all different information types written on the electronic
storage media or system, together with the appropriate documentation and
information necessary to access records and indices will be maintained, kept
current and provided promptly to the superintendent upon request;
(10) No paper documents produced or
reproduced by means of an electronic storage media or system shall be destroyed
until the conditions of this paragraph have been met with regard to each paper
document that is to be destroyed; and
(11) At the request of the division, the
records shall be printed on paper for inspection or examination without cost to
the division within forty-eight hours of the request. The superintendent may
grant additional time for good cause shown upon receipt of a request for
additional time from the registrant.
(I) In order to reduce the risk of consumer fraud and
related harms, including identity theft, registrants and qualified exempt
entities shall be required to comply with section 216 of the "Fair and
Accurate Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010),
15 U.S.C. 1681w as in effect on November 30, 2016, section 501 of the
"Gramm Leach Bliley Act," 113 Stat. 1338 (1999) (amended 2010), 15
U.S.C. 6801 as in effect on January 12, 2014, and the rules promulgated
pursuant to those federal acts, including 16 C.F.R. Part 313 and 16 C.F.R. Part
682, as in effect November 30, 2016, pertaining to the maintenance, security,
and disposal of consumer information and records.
(J) Before ceasing to conduct or
discontinuing business as a registrant, the registrant shall arrange for and be
responsible for the preservation of the books and records required to be
maintained and preserved under this rule for the remainder of the period of
time specified in this rule, and shall notify the division in writing of the
exact address where the books and records will be maintained during the
required period. If there is a change in location of the records any time
withing the time the former registrant is required to preserve the records
under this rule, the former registrant shall notify the superintendent of the
change in location.
