Set to begin enforcement on November 1, 2009, the Federal Trade Commission once again has delayed enforcement of the Red Flags Rule. Enforcement will now begin June 1, 2010.
As stated in the FTC press release announcing the enforcement delay, the Red Flags Rule "was promulgated under the Fair and Accurate Credit Transactions Act, in which Congress directed the Commission and other agencies to develop regulations requiring “creditors” and “financial institutions” to address the risk of identity theft. The resulting Red Flags Rule requires all such entities that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect, and respond to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft." The FTC's press release may be found here.
Showing posts with label FTC. Show all posts
Showing posts with label FTC. Show all posts
Friday, October 30, 2009
Friday, May 1, 2009
Red Flags Enforcement Delayed Again
The Federal Trade Commission announced that it will, again, delay enforcement of the Red Flags Rule - this time until August 1, 2009 - "to give creditors and financial institutions more time to develop and implement written identity theft prevention programs."
According to FTC Chairman Jon Leibowitz, “Given the ongoing debate about whether Congress wrote this provision too broadly, delaying enforcement of the Red Flags Rule will allow industries and associations to share guidance with their members, provide low-risk entities an opportunity to use the template in developing their programs, and give Congress time to consider the issue further.”
"The Fair and Accurate Credit Transactions Act of 2003 (FACTA) directed financial regulatory agencies, including the FTC, to promulgate rules requiring “creditors” and “financial institutions” with covered accounts to implement programs to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft. " The result was the Red Flags Rule.
The FTC originally slated enforcement to commence November 1, 2008. That was pushed off to May 1, 2009. And now, enforcement has been pushed off again to August 1, 2009.
According to FTC Chairman Jon Leibowitz, “Given the ongoing debate about whether Congress wrote this provision too broadly, delaying enforcement of the Red Flags Rule will allow industries and associations to share guidance with their members, provide low-risk entities an opportunity to use the template in developing their programs, and give Congress time to consider the issue further.”
"The Fair and Accurate Credit Transactions Act of 2003 (FACTA) directed financial regulatory agencies, including the FTC, to promulgate rules requiring “creditors” and “financial institutions” with covered accounts to implement programs to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft. " The result was the Red Flags Rule.
The FTC originally slated enforcement to commence November 1, 2008. That was pushed off to May 1, 2009. And now, enforcement has been pushed off again to August 1, 2009.
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