New Delay for the Red Flags Rule
The Federal Trade Commission announced today that it will further delay enforcement of the Red Flags Rule. Organizations now have until November 1, 2009, to become compliant. The rule was to go into effect Saturday, August 1.
FTC says the delay will allow organizations covered by the rule to further review its educational materials and prepare their compliance plans.
The anti-fraud regulation requires organizations that act as creditors to implement programs to identify, detect, and respond to “red flags” that could indicate identity theft. The final rule was published November 9, 2007, with an original compliance date of November 1, 2008. It has been delayed several times due to a lack of industry readiness and calls for more clarification and assistance in designing compliance plans.