Stop me if you’ve heard this before. In a move that should surprise no one, the FTC has announced that are delaying enforcement of the “Red Flags” Guidelines for Identity Theft Prevention until August 1, 2009 for all Creditors and Financial Institutions. For those of you playing at home, this is the second such delay. These guidelines were originally supposed to take effect on November 1, 2009. They were then delayed until May 1, 2009.
“Given the ongoing debate about whether Congress wrote this provision too broadly, delaying enforcement of the Red Flags Rule will allow industries and associations to share guidance with their members, provide low-risk entities an opportunity to use the template in developing their programs, and give Congress time to consider the issue further,” FTC Chairman Jon Leibowitz said.
It is important to note that this delay does not apply to employers who still need to be in compliance by the original November 1, 2008 deadline. Employers must still have a policy in place to handle “Red Flag” Address Discrepancy Notifications from National Consumer Reporting Agencies (mainly the credit bureaus).
If you are interested in learning more about your obligations under these guideline, check out our free webinar entitled “Users Responsibilities Under the FACT Act Red Flag Regulations”.
