COMPLIANCE CORNER

May
01
2009

FTC Delays Enforcement of Red Flags Rule until August 1, 2009

The Federal Trade Commission has suspended enforcement of the new "Red Flags Rule" until August 1, 2009, giving creditors and financial institutions additional time in which to develop and implement written identity theft prevention programs. The effective date was previously delayed from November 1, 2008, until May 1, 2009. This delay in enforcement is limited to the Identity Theft Red Flags Rule, and does not extend to the rule regarding address discrepancies applicable to users of consumer reports, effective November 1, 2008, or the rule regarding changes of address applicable to card issuers.

For more information, see the FTC announcement concerning the delay.