ID Theft Rules: House Passes Limited Exemption

Our fellow bloggers at Workers Comp Insider tipped us off that this week is Protect Your Identity Week, so it seems fitting to end it with a post on ID theft. This is a timely reminder that fast approaching is the November 1 deadline by which financial institutions and creditors have to comply with the Federal Trade Commission’s (FTC) so-called “red flags rule† which requires them to develop and implement written identity theft programs. Regular readers will remember that the FTC has delayed enforcement of the new rule a number of times. Now an October 21 online article at Lawyers USA by Kimberly Atkins reports that earlier this week the House passed H.R. 3763, a bill that would amend the Fair Credit Reporting Act to exempt certain businesses from the red flag guidelines. Under the bill, healthcare, accounting and legal practices that employ fewer than 20 people would automatically be exempt from the red flags rule. Atkins also mentions that officials at the American Bar Association, which has filed suit to have attorneys exempted from the red flags rule, are urging the Senate to extend the protections to all lawyers. Check out I.I.I. facts and stats on Identity Theft.

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