Bulletin: May 5, 2009
Delay in FTC’s Red Flag Rules
On Friday, May 1, 2009, the Federal Trade Commission (FTC) announced a second delay for compliance with the Red Flag Rules. The delay is for three months, with compliance now scheduled for August 1, 2009. The Red Flag Rules require “creditors” to establish and enforce written identity theft prevention programs, as part of the Fair and Accurate Transaction (FACT) Act of 2003. Originally, the programs were to be in place by November 1, 2008, but the deadline was extended until May 2009 because many entities, including health care practices, were unaware of its existence.
See the article in the February 2009 Quadax newsletter for further details on the program.