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May 1, 2009 enforcement of FTC 'Red Flags' Rule

By
Services for Real Estate Pros

November 1, 2008 was the enforcement date for businesses who deal with the non-public information of clients.  Thankfully for a lot of businesses that were unaware, the six month extension (until May 1, 2009) has been a big help for them to learn what they needed to do to comply with the FTC 'Red Flags' Rule.  What the FTC is requiring from businesses in certain categories is to develop and implement a written identity theft prevention program.

The Rule applies to creditors and financial institutions. Federal law defines a creditor to be: any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit. 

Some examples of creditors are finance companies, automobile dealers, mortgage brokers, utility companies, telecommunications companies, and non-profit and government entities that defer payment for goods or services. Financial institutions include entities that offer accounts that enable consumers to write checks or to make payments to third parties through other means, such as other negotiable instruments or telephone transfers.

Is your business at risk?  If so have one of our ADRS certified representatives give you a free review and find out how you can get your business compliant with the FTC.  We cover North America.

Take a moment to read the Enforcement Policy Statement

Ced Reynolds

(909) 597-3502

 

 

 

Comments (4)

Bo Hussung
Bell Title /Triserv LLC - Nashvle, TN

Ced,

spread the word loud and clear. I do not think many businesses understand the seriousness of this and unfortunately for many, it may be too late when and FTC auditor comes knocking on their door.

Bo

Mar 28, 2009 01:26 AM
Lisa Marie Flenoury
"Lisa The Broker" - Playa Vista, CA
"Lisa The Broker" - Making Dreams Come True

It's about time and well overdue!  I cannot tell you how many times I've received a letter saying oops.... please contact your bank.

Mar 28, 2009 04:59 PM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

Bo, always good reading your comments.  Thanks for sharing your thoughts. This information is vital and we intend to spread the word to every business owener we can. In fact we don't really have enough people to help us.  Do me a favor and keep you eyes open for sharp folks who are looking for an additional assignment.

Lisa, thanks for your response.  It's just amazing what is happening in our country and the world.  We're doing what we can on our end.  Thanks for your support.

Mar 30, 2009 05:16 AM
Not a real person
San Diego, CA

One would think that this type of regulation would not be necessary, but the fact that it is means that businesses out there aren't thinking about their Clients.

Apr 01, 2009 08:22 PM