Commercial Collections Blog

Be Aware of New Red Flag Law

FTC Chairman Jon Leibowitz advised in a December 8, 2010, press release that Congress has announced that all organizations who grant credit are expected to be compliant with the “Red Flags Rule” on December 31, 2010. The Red Flags Rule requires all organizations subject to the legislation to develop a formal written and revisable Identity Theft Prevention Program to detect, prevent and mitigate identity theft, Chairman Leibowitz’s press release stated that

“The Rule doesn’t require any specific practice or procedures. It gives businesses the flexibility to tailor their written ID theft detection program to the nature of the business and the risks it faces. Businesses with a high risk for identity theft may need more robust procedures – like using other information sources to confirm the identity of new customers or incorporating fraud detection software. Groups with a low risk for identity theft may have a more streamlined program – for example, simply having a plan for how they’ll respond if they find out there has been an incident of identity theft involving their business.”

To assist affected organizations, Burt & Associates has developed a comprehensive Red Flags Rule Compliance Program. In addition, Burt & Associates’ program offers a customizable template, as well as an employee training guide, to help your organization towards compliance with this legislation.

Please contact Collection Agency Burt and Associates, to find out how this legislation affects your company:

Phone:          877.740.7839 (toll-free)

To view Chairman Leibowitz’s entire press release, please click on:

To view a publication released earlier this year by the FTC detailing the Red Flags Rule, click on:

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