LOUISVILLE, Ky. (May 2, 2009) – The Federal Trade Commission (FTC) announced on April 30, 2009, it will delay enforcement of the Red Flags Rules until Aug. 1, 2009, to give creditors and financial institutions more time to develop and implement written identity theft prevention programs. The previous compliance deadline was May 1, 2009.
The Red Flag Rules require financial institutions and creditors to develop and implement a written identity theft prevention program if offering or maintaining one or more covered accounts. Moreover, the Rules require service providers for a financial institution or creditor, including third-party debt collectors, to also develop and implement policies and procedures designed to detect, prevent, and mitigate the risk of identity theft.
During outreach efforts last year, the FTC staff learned some industries and entities within the agency’s jurisdiction were uncertain about their coverage under the Red Flag Rules. The Commission stated delaying enforcement of the Red Flag Rules will permit industries and associations to share guidance with their members.
EVS client services manager Eric Knapp said, While this deadline keeps moving our clients understand the importance of having a solid Red Flag plan in place and EVS is happy to assist them in the identity verification portion of their plan.
About Electronic Verification Systems
Electronic Verification Systems (www.electronicverificationsystems.com) is a leading provider of identity assurance products designed to help businesses combat identity theft, control costs, satisfy governmental regulation, and support audit and control requirements.
With major clients in the financial services, retail product, brokerage, education, insurance, and corporate security industries; Electronic Verification Systems provides powerful and innovative solutions specific to your industry and organization.
Press Contact: Jay Stewart, jstewart@electronicverificationsystems.com. 866-491-5665
