Wednesday, October 22, 2008

FTC Announces a Forbearance of the Red Flags Enforcement

Red Flags Rule Compliance Deadline Extended to
May 1, 2009

FTC Grants Six-Month Delay of Enforcement of 'Red Flags' Rule Requiring Creditors and Financial Institutions to Have Identity Theft Prevention Programs

The Federal Trade Commission will suspend enforcement of the new "Red Flags Rule" until May 1, 2009, to give creditors and financial institutions additional time in which to develop and implement written identity theft prevention programs.
NOTE: Today's announcement and the release of an Enforcement Policy Statement do not affect other federal agencies' enforcement of the original November 1, 2008 deadline for institutions subject to their oversight to be in compliance.Read the announcement:

This applies to all entities with oversight from the FTC only. All financial institutions with oversight from the federal banking and financial regulatory authorities still must be compliant by November 1st of 2008.

The FTC currently estimates that approximately 11 million entities from private business to municipalities, schools and universities, and non-profits are considered to have covered accounts and need to address the "red Flags" and initiate compliance steps relevant to each organization.

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