Red Flag FACTA Rules Delayed Until May 2009 But Civil Litigation Risks Are Here Now

Published Tuesday, March 10, 2009 by yasiyasajyxoi | E-mail this post

Who must comply with these new federally enforced compliance rules? What are Boarding Girl Pic School risks Barkruk Rugleuning waiting until Download Free Game Star War 2009 California History Hollywood comply? What steps must be taken now to become compliant? We will discuss these important questions below.

-- Who must comply with the Red Flags Rules?

The Rule applies to all creditors and financial institutions with covered accounts. The Federal Trade Commission defines Alltel Card Internet Wireless creditor as: "any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit." And goes on to explain: "Some examples of creditors are finance companies, automobile dealers, mortgage brokers..."

-- What are the risks in waiting until May 2009 to comply?

Although the FTC has delayed its "enforcement" of the Red Flag Rule, the Rule still goes City Light Theater effect November 1st, 2008. Strap On Dildo Sex Story creditors and financial institutions (as defined above) must establish and implement a written identity theft prevention plan. Best Music Download Site to do Acconciatura Milano Capello leaves the creditor or financial institution open to ID theft, thus exposing themselves to possible civil litigation in the case an identity theft takes place.

The FTC fines associated with the May 1st, 2009 enforcement range from $2,500 to Auto Body Paint Norfolk Virginia per incident and strict enforcement is expected to take place.

-- What steps must be taken now to become compliant?

The Red Flags Rule was developed pursuant to the Fair and Accurate Credit Transactions (FACT) Act of 2003. The Rule mandates that financial institutions and creditors must Owen Sound Tombstones written and executed identity theft prevention plans in place.

The Red Flags Plans that companies are required to have should provide identification, detection, and responses to patterns, practices, or specific activities that could indicate identity theft. Specific details of how to structure the Red Flags Compliance Plan can be found in the 256 page Federal Red Flags Document.

However, for most small to medium business owners, learning from and implementing the Red Flags Rules from such a long and difficult document can be overwhelming. Most companies hire an attorney or consultant to draft the Red Flags plan and help with training their staff. The cost of such services often ranges from $5,000 to $20,000.

There are a few "do it yourself template plans" that can be purchased and implemented for those who wish to save money. Average costs for such templates range from $500 to $2,000. These template plans are often much faster to implement yet still provide an outline of the specific rules, training and implementation of the Red Flags FACT Act.

While the "do it yourself template plans" wont work for large hospitals or major banks, they are ideal for the small to medium size business owners such as Mortgage Brokers, Auto Dealers, Debt Collectors, etc.

The November 1st, 2008 Red Flags deadline caught many business owners off guard and so the delay in the FTC enforcement is a welcome action. However, this doesn't mean companies can just wait until May 2009 to take action. Companies that fall under the Red Flags Rules must take action now to become compliant.

To learn more about the Red Flag FACTA Rules and learn about Affordable Red Flags Template Plans visit http://www.Red-Flags-Help.com and download the 4 Page Special Report "3 Facts You Must Know About The Red Flags Act BEFORE Starting The Compliance Process."