FTC Further Delays Enforcement of Red Flags Rule

November 13, 2009 at 1:59 pm Leave a comment

To the surprise of no one, on October 30, 2009, Congress requested, and the  Federal Trade Commission (FTC) approved, a further delay of enforcement of the Red Flags Rule (the Rule).  This time, enforcement of the Rule is delayed until June 1, 2010.  This enforcement delay provides creditors additional time to develop and implement written identity theft prevention programs required by the Rule.

Developed under the Fair and Accurate Credit Transaction Act of 2003, the Rule has a surprisingly wide application to any business that bills customers after providing goods or services. This includes many health care providers, construction companies and merchants who offer Retail Installment Sales Contracts, for example. If such “creditors” have “covered accounts” (as defined in the Rule), they must adopt an identity theft prevention program. The program must be designed to identify, detect, and respond to patterns, practices, or specific activities – known as “red flags” – that might indicate identity theft.

A full copy of the FTC’s October 30, 2009 press release is available here.

About these ads

Entry filed under: Uncategorized. Tags: .

FDIC Announces Final Rule for Prepaid Assessments: Exemption Applications Due by December 1st Federal Bank Regulators Issue Final Rule on Risk Weights of Modified Mortgage Loans

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Produced & Maintained By

Stinson Leonard Street Logo

Categories

a legal resource for the banking & financial services industry

Follow me on Twitter


Follow

Get every new post delivered to your Inbox.

%d bloggers like this: