Red Flags Enforcement Delayed Again

At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule – a regulation designed to protect consumers from identity theft – until June 1, 2010. In a press release about the Red Flags Rule delay, released Friday, Oct. 30, the FTC said it delayed the action “at the request of members of Congress.” The rule, adopted as part of the Fair and Accurate Credit Transactions Act of 2003, requires businesses with access to sensitive data to develop a written plan to flag possible identity theft, put the plan in place and review it periodically to make sure it’s effective.

KPA also published a whitepaper to help dealers comply with the Red Flags Rule. The whitepaper provides dealers with the steps they need to take to meet the FTC’s requirements.