Of potential interest to call centers, Michele Shuster, of Mac Murray, Petersen & Shuster LLP, alerted Connections Magazine that the Federal Trade Commission (FTC) announced yesterday that it will delay enforcement of the new “Red Flags Rule” amendments to The Fair and Accurate Credit Transactions Act of 2003 (FACTA).
The Red Flags Rule requires creditors and financial institutions to develop and implement written identity theft prevention programs that detect the warning signs, or “red flags,” of identity theft.
The FTC also clarified that FACTA’s definition of “creditor” applies to any entity that regularly extends or renews credit — or arranges for others to do so — and includes all entities that regularly permit deferred payments for goods or services. Accepting credit cards as a form of payment does not, by itself, make an entity a creditor. Some examples of creditors are finance companies, automobile dealers, mortgage brokers, utility companies, telecommunications companies, non-profit and government entities that defer payment for goods or services, and businesses that provide services and bill later.
The three-month extension is meant to give additional time to implement these new measures.