It’s impossible to write about the Red Flag Rules without an apologetic “stop me if you’ve heard this one before” preface. So don’t shoot the messenger, but the deadline for the Feds’ identity-protecting Red Flag Rules has been delayed. The newest deadline—the fifth—replaces the January 1 deadline with one of June 1, 2010.
Congress created the program in 2003 in an attempt to stem the tide of identity theft by forcing creditors to use a common sense approach to identity theft prevention. It was originally slated to take effect in November 2008.
From its inception the rules have met with formidable pushback from the American Medical Association, the American Bar Association and the nation’s bankers, each group taking exception to the FTC’s interpretation of “creditor.” (more…)