Current through Register Vol. 46, No. 19, March 20, 2024
(1)
General record requirements.
A licensee must keep records that allow the superintendent to
determine the licensee's compliance with relevant statutes and regulations.
a. The licensee may keep the records as a
hard copy or in an electronic equivalent.
b. The licensee shall keep records for at
least 36 months from the date of the final transaction with the
debtor.
c. The licensee shall
maintain all books and records in good order and shall produce books and
records for the superintendent upon request. Failure to produce such books and
records within 30 days of the superintendent's request may be grounds for
disciplinary action against the licensee.
d. The obligation to maintain records
continues even after the licensee ceases business operations in Iowa and turns
in or surrenders its license. The owners and directors of the licensee are
responsible for ensuring that this requirement is met.
(2)
Required records. A
licensee operating a debt management business shall keep, at its principal
place of business, an index, a client log, an account file, and an account
ledger.
(3)
Index.
All records kept by a debt management business shall be accessible by the
debtor's name and account number.
(4)
Client log. The client
log is a chronological list of active and inactive clients. The client log
shall include the name of the client, the account number, the date the account
was opened, the date the account was closed, and the expiration date of the
account.
(5)
Account
file. The account file consists of the application, the licensee's
comprehensive review of the debtor's debts and monthly budget as required by
Iowa Code section
533A.8(2),
a copy of the debt management contract, and all disclosures to the debtor
required by Iowa Code section
533A.8(3).
(6)
Account ledger. A
licensed debt management business whose debt management program is based on a
model which requires the licensee or any licensee to receive money or evidences
thereof from the debtor to distribute to the debtor's creditors shall maintain
an account ledger for each debtor, which shall show:
a. The name and address of the debtor, the
account number, the amount of the debtor's outstanding debts, and the total of
payments the debtor has made to the licensee.
b. A transaction history that lists all
transactions with the debtor and the debtor's creditors. Payments from the
debtor shall be posted to the account ledger, effective the date the payments
were received, and shall show the date payment was received and the total
amount of the payment. Payments to the debtor's creditors made from the
debtor's account shall be posted to the account ledger effective the date the
payments were made. The account ledger shall show the date the payment was
made, the total amount of the payment, and a description of how the payment was
applied to the debtor's account. Fees that the licensee deducts from the
debtor's account shall be posted to the account ledger effective the date the
fees were collected, and the account ledger shall show the date the fees were
collected and the total amount of fees collected. Other transactions shall be
fully described. Corrections to the transaction history shall be made by
corrective entry and not by erasure.
(7)
General business records.
A licensee must keep the following general business records for at
least 36 months:
a. All checkbooks, check
registers, bank statements, deposit slips, withdrawal slips, and canceled
checks (or copies thereof) relating to the debt management business of the
licensee.
b. Complete records
(including invoices and supporting documentation) for all expenses and fees
paid on behalf of each applicant for debt management or debt settlement,
including a record of the date and amount of all such payments actually made by
each applicant.
c. Copies of all
federal tax withholding forms, reports of income for federal taxation, and
evidence of payments to all employees, independent contractors, and others
compensated by a licensee in connection with the conduct of the debt management
business.
d. All correspondence and
other records relating to the maintenance of any surety bond required by Iowa
Code chapter 533A.
e. Copies of all
reports of audits, examinations, inspections, reviews, investigations, or other
similar functions performed by any third party, including but not limited to
the superintendent or any other regulatory or supervisory authority.
f. Copies of all advertisements and
solicitations concerning debt management or debt settlement directed at Iowa
residents, including advertisements and solicitations on the Internet or by
other electronic means, in the format (e.g., recorded sound, video, print) in
which the advertisements and solicitations were published or
distributed.
(8)
Disposal of records. If a licensee or former licensee disposes
of records at the end of the retention period, the licensee or former licensee
shall dispose of the records in a reasonable manner that safeguards any
identification information, as defined in Iowa Code section
715A.8(1)
"a. " The owners and directors of licensees and former
licensees are responsible for ensuring that this requirement is
met.
