At the request of members of Congress, the Federal Trade Commission for the fourth time is delaying enforcement of the “Red Flags” Rule, this time until June 1, 2010.
The impending regulation affects financial institutions and creditors subject to enforcement, including auto dealers because they arrange auto financing for their customers.
The Red Flags Rule requires participants to implement written identity-theft prevention programs to help identify, detect and respond to patterns, practices or activities involving identity thieves.
The initiative comes under the Fair and Accurate Credit Transactions Act, in which Congress directed the trade commission and other agencies to develop regulations requiring “creditors” and “financial institutions” to step up efforts of addressing the risk of identity theft.
The regulation was last scheduled to take effect in November. The delay is to allow affected parties to get up to speed in developing the required anti-identity theft programs.