What is Red flag?
As of November 1, 2007 the Federal and State governments have mandated that businesses dealing in the extension of credit be required to establish certain protocol and procedures for the remediation of Identity Theft matters associated with their clients.
The requirements include the maintenance of written manuals, training materials, and action reports on Red Flag instances. The date for the enforcement of these rules has been moved several times to allow businesses to prepare.
August 1, 2009 is expected to be the final date for enforcement.
Beyond that date a failure to comply will likely lead to fines starting at $2500.00 per incident.
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