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
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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