FTC to delay 'red flag' rule enforcement until June 1
WASHINGTON (11/4/09)--The Federal Trade Commission (FTC) on Tuesday announced that it will delay enforcement of its so-called "red flags" rule, which addresses identity theft, until June 1, 2010.
Congress requested that the FTC delay enforcement of the rule, which was developed to implement parts of the Fair and Accurate Credit Transactions (FACT) Act of 2003.
The FTC action would only apply to state-chartered credit unions. Federal credit unions were required to comply with NCUA's red flag regulations on Nov. 1, 2008.
FACTA directed financial regulatory agencies, including the FTC, to promulgate rules requiring those under its supervision that have covered accounts to implement programs to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft.
Consumer accounts or other accounts that financial institutions find to have a risk of identity theft are covered by the rule.
The FTC previously delayed the enforcement of the rule until November 1, 2009.
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