7.29.2009 The Federal Trade Commission (FTC) delayed the effectiveness of its enforcement of the “Red Flags” Rule until November 1, 2009, giving certain financial firms an additional three months to come into compliance. The rules were set to go into effect August 1, 2009.
The Rule requires certain financial institutions and creditors to develop and implement Identity Theft Prevention Programs to prevent, detect and mitigate identity theft in connection with certain covered accounts.
The FTC stated its intention to redouble its education efforts by providing additional resources and guidance intended to clarify what businesses are covered by the Red Flags Rule and what they must do to comply with it. The extension is intended to give such entities additional time to review the FTC’s guidance and to develop and implement written Identity Theft Prevention Programs.
Click http://www.ftc.gov/opa/2009/07/redflag.shtm to access the release announcing the delay.