Ariz. Admin. Code § R20-4-604 - Records

A. A debt management company shall keep books, accounts, and records adequate to provide a clear and readily understandable record of all its business activity. A debt management company may keep its books, accounts, and records as electronic records if the debt management company can generate all information and documentation required by this Section in the timeframe set by the Department for examination or other purposes. A debt management company's books, accounts, and records shall include:

1. A file for each account containing:

a. A copy of all correspondence concerning the account;

b. Evidence of the notice given to creditors of the debt management contract;

c. A subsidiary ledger disclosing all financial transactions concerning the account;

d. A copy of each written statement of account given to the debtor;

e. The original budget analysis required under Section R20-4-607; and

f. The original contract between the debt management company and the debtor, including all amendments.

2. A trust account general ledger, which is kept current daily, which reflects each deposit to and disbursement from the trust account.

3. Each reconciliation of the debt management company's trust account, prepared at least once a month.

4. A general ledger, kept current monthly, which reflects each financial transaction by the debt management company except those recorded in its trust account general ledger.

5. A financial statement produced in accordance with generally accepted accounting principles at least once every three months, or more frequently if directed by the Director, which reflects the financial condition of the debt management company. The financial statement shall include:

a. A balance sheet,

b. A statement of income and retained earnings,

c. A statement of changes in financial condition, and

d. Appropriate footnotes that either:

i. Explain entries in the documents listed in subsections (A)(5)(a), (b), and (c);

ii. Contain material information not required or not reportable in documents listed in subsections (A)(5)(a), (b), or (c); or

iii. Contain other disclosures required by generally accepted accounting principles.

6. A record of all litigation naming the debt management company as a party including :

a. For pending litigation:

i. A copy of the complaint;

ii. A copy of any answer filed by the debt management company in response to the complaint; and

iii. A copy of any motion filed by the debt management company; and

b. For any litigation that is no longer pending, a copy of any judgment showing the settlement date, dismissal, or other final order disposing of the litigation.

B. All records required under this Section may be maintained at the debt management company's office in Arizona. A debt management company may keep its records outside this state if it:

1. Makes the records available to the Director, for examination or other purposes, in this state not more than three business days after demand; and

2. Allows its debtor customers to call toll free to obtain information from the records that are not available from the debt management company's office in Arizona.

C. Each debt management company shall preserve its books, accounts, and records for the period required by A.R.S. §§ 6-709(J) and 6710(1).

Notes

Ariz. Admin. Code § R20-4-604

Adopted effective January 1, 1979 (Supp. 78-5). R20-4-604 recodified from R4-4-604 (Supp. 95-1). Amended by final rulemaking at 8 A.A.R. 2708, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1945, effective 10/2/2023.