The Federal Trade Commission announced yesterday that the agency would once again delay enforcement of what is commonly referred to as the "Red Flags Rule," this time from May 1 to August 1, 2009. The Rule requires financial institutions and creditors to adopt programs to identify and respond to indicators of identity theft. We note that the FTC currently construes the term "creditors" to include health care providers that accept deferred payment.

This delay in enforcement is limited to the Identity Theft Red Flags Rule (16 CFR 681.2), and does not extend to the provisions addressing discrepancies applicable to users of consumer reports (16 CFR 681.1), or to the provisions regarding changes of address applicable to card issuers (16 CFR 681.3), which are already in force.

The full text of the announcement can be found at