privacy law advocate l.d.a.

  Recently the The Federal Trade Commission extended it’s current deadline of November 2008 to May 2009 for compliance in it’s new Red Flag Rules. Under the  new Red Flag Rules, a creditor or financial institution covered by the The Fair and Accurate Credit Transactions Act (FACT) must examine their company’s security policies and look for  what is known as Red Flags. Red Flags are defined as a pattern, practice or activity that could indicate identity theft.  After an evaluation of current identity theft prevention measures, their shortcomings and the risks to customers new policies need to be implemented.

FACT defines  persons covered under the Red Flag Rules as creditors or financial institutions. The Equal Credit Opportunity Act (ECOA), defines creditors covered by the Red Flag Act as “any person that provides a product or service for which the consumer pays after delivery.” Under this wide definition of creditors many businesses will find themselves required to implement new identity theft measures in protecting their customers personal information. To find out more on the new Red Flag Rules and their implications check out the following link.

http://privacylaw.proskauer.com/2008/10/articles/identity-theft/ftc-suspends-enforcement-of-red-flag-rules-for-six-months/

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