FTC Enforcement Deadline for Identity Theft Red Flags Rule is December 31, 2010

At the request of several Members of Congress, the Federal Trade Commission delayed enforcement of the “Red Flags” Rule through December 31, 2010, while Congress considered legislation that would affect the scope of entities covered by the Rule.

With the delay now about to end, it's time to be sure you are ready for compliance.To help members implement these new standards, NAPBA paid for the development costs for a implementation-ready Red Flags Rule Kit. The kit was developed by John Barlament at Michael Best & Friedrich in Milwaukee, Wisconsin. It is tailored just for third party administrators. Because we are able to share the cost among members, your price for the kit is just $500. Cost-sharing is a great advantage of NAPBA membership. Please contact megan@napba.org to order your copy.

The Rule was developed under the Fair and Accurate Credit Transactions Act, in which Congress directed the FTC and other agencies to develop regulations requiring “creditors” and “financial institutions” to address the risk of identity theft. TPAs are involved primarily because of the use of benefits payments cards, which fall under the regs. The resulting Red Flags Rule requires all such entities that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect, and respond to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.