Yet again the FTC has delayed the Red Flag Rule enforcement upon the request of Congress. The House of Representative approved HR 3763, a bill which would exempt from coverage of the Red Flag Rule any health care, accounting, or legal practice with twenty or fewer employees, as well as certain other businesses. The Commission is extending its forbearance from enforcement for violations until June 1, 2010. This does not mean that a business or company subject to the rules should delay enacting an Identity Theft Prevention Programs.
The delay is limited to the Red Flags Rule and does not extend to the rule regarding address discrepancies applicable to users of consumer reports or to the rule regarding changes of address applicable to card issuers. When an address discrepancy alert is issued due to the address inputted is different from the one on file, the lender must re-verify the address by one or more of the procedures in 16 CFR 681.1.
The FTC has resources to help a business conform to the rules and regulations established in the Fair and Accurate Transaction Act. Here is a link to their Do it Yourself template for Businesses at low risk for ID Theft http://www.ftc.gov/bcp/edu/microsites/redflagsrule/diy-template.shtm
To read more details of the FTC delays rules article http://www.ftc.gov/opa/2009/10/redflags.shtm , or their designated website http://www.ftc.gov/redflagsrule
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