RHODE ISLAND ADOPTS NEW RECORD RETENTION RULES FOR DEBT COLLECTORS
RMAI Members that are licensed to collect debt in the state of Rhode Island should be aware of newly adopted records retention requirements. The exact requirements are listed below but essentially it requires licensed debt collectors to maintain all written and recorded materials for five years.
RMAI would strongly recommend that its members share this Member Alert with those internally responsible for compliance, records retention, purchase/sale requirements, and legal operations. Furthermore, debt buying companies are encouraged to reach out to any third party agency collecting on their behalf to ensure those entities are also maintaining the required records and there is a process in place to transfer copies of these records so that they are also maintained by the account owner.
This Alert is intended for Members of RMAI and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.
TITLE 230 – DEPARTMENT OF BUSINESS REGULATION
CHAPTER 40 – BANKING
SUBCHAPTER 25 – DEBT COLLECTORS
Every person carrying on the business of transacting in debt collecting shall make and preserve a record of each consumer contact and each transaction.
1.2 Records to be Maintained
- The records shall include, but not be limited to, all of the following information:
- all audio recordings of contact with customers,
- records of all customers contacted,
- all written correspondence (including that sent electronically) between the licensee and the consumer,
- complete files and documentation of every debt the licensee has attempted to collect including any and all documents relating to that debt;
- all communications received from customers including copies of all documents received in hard copy or electronically and recordings of or notes regarding all conversations with consumers,
- all written notices sent to consumers and any and
- all other documents created during or received by the licensee in the transaction of the business under the license.
- The records shall always be open to inspection by the director or the director’s designee upon his or her request. The licensee shall not fail, neglect, or refuse to submit or show the record or prevent a proper person as defined in this section to inspect the record.
- The records may be maintained in any manner which reasonably allow their retrieval and the licensee shall retrieve the records upon request of the Department.
- The records shall be maintained for a minimum of five years following the transaction.