What is the maximum time frame for retaining unauthorized return records?

What is the maximum time frame for retaining unauthorized return records?

• A. 1 year
• B. 2 years
• C. 6 years
• D. 10 years

Answer: (C)

The correct answer regarding the maximum time frame for retaining unauthorized return records is six years. This duration aligns with the guidelines established by the National Automated Clearing House Association (NACHA), which outlines record retention requirements for various types of ACH records. For unauthorized returns, specifically under NACHA rules, institutions must maintain documentation, including evidence of the unauthorized transaction, for a period of six years. This retention period is essential for ensuring compliance and providing the ability to address any disputes or investigations related to unauthorized ACH activity during that timeframe. In general, the other options reflect periods that are either too short or unnecessarily long in the context of regulatory requirements for records associated with unauthorized returns.

The correct answer regarding the maximum time frame for retaining unauthorized return records is six years. This duration aligns with the guidelines established by the National Automated Clearing House Association (NACHA), which outlines record retention requirements for various types of ACH records. For unauthorized returns, specifically under NACHA rules, institutions must maintain documentation, including evidence of the unauthorized transaction, for a period of six years. This retention period is essential for ensuring compliance and providing the ability to address any disputes or investigations related to unauthorized ACH activity during that timeframe.

In general, the other options reflect periods that are either too short or unnecessarily long in the context of regulatory requirements for records associated with unauthorized returns.