Federal mandate affecting dealerships delayed
August 11, 2009
Filed under Features
The Federal Trade Commission (FTC) has once again delayed the deadline to comply with the new “Red Flags Rule,” a program geared at identifying and responding to identity theft.
The FTC extended the deadline three months to Nov. 1.
The rule affects financial institutions and “creditors.” The latter group is defined 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.
The FTC’s Red Flags Web site, www.ftc.gov/redflagsrule, offers resources to help entities determine if they are covered and, if they are, how to comply with the federal mandate. The Web site includes a compliance template that enables companies to design their own Identity Theft Prevention Program.