FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule

FTC Reports -

At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC.

On October 30, 2009, the U.S. District Court for the District of Columbia ruled that the FTC may not apply the Red Flags Rule to attorneys. Today’s announcement that the Commission will delay enforcement of the Rule until June 1, 2010, does not affect the separate timeline of that proceeding and any possible appeals. Nor does it affect other federal agencies’ ongoing enforcement for financial institutions and creditors subject to their oversight.

See FTC Entire Statement at: http://www.ftc.gov/opa/2009/10/redflags.shtm

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Its Not always about the money...

Sometimes you need to sit back and wait for things to develop. Acting to fast or rushing to a conclusion can sometimes get you in trouble or worse those you are teaching. If you are going to be in the "teacher" role, you must me fact based. Its ok to be proactive but that is not the same as reckless.

If this legislation is passed in the Senate it will change the landscape of the industry. I say, common sense seems to be prevailing.

Full Article can be found at - http://www.scmagazineus.com

The U.S. House of Representatives this week unanimously passed legislation that would exempt certain small organizations from complying with the Red Flags Rules.
The rules, developed in accordance with the Fair and Accurate Credit Transactions Act of 2003 (FACTA), require financial institutions and other organizations classified as “creditors” to develop programs to identify, detect and respond to indications of identity theft. A bill passed this week would amend FACTA and exclude health care, accounting and legal practices with 20 or fewer employees from having to comply with the regulations, set to be enforced starting next month.

Also, the bill would create a provision to enable other businesses to apply for exemption. To be exempt from complying with the regulation, the bill stipulates that a business would have to meet one of the following guidelines: It must know all of its customers or clients individually; it must only perform services in or around the residences of its customers; or it must not have experienced incidents of identity theft, and identity theft must be rare for businesses of its type.

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Without proper identity theft coverage you may feel naked when you become a victim.