Red Flags Enforcement Delayed, But the Rules Still Apply
— June 2, 2010 —
There seems to be quite a bit of confusion in the market concerning the FTC’s Red Flags Rule and when it will finally be in place. Federal enforcement of the rules have been pushed back, but The Red Flags Rule is in place and has been since January 1, 2008.
Many of the rules or “required procedures” in The Red Flags Rule are gathered from various states and federal laws already in place. The FTC’s Red Flags Rule basically just assigns already existing regulations to entities not listed in the originating ordinance or rule. Meaning that while federal enforcement has been pushed back, local enforcement has not.
The rule is 256 pages of legalease and difficult to interpret. Many people have very little knowledge of what to do and when to do it. For example, recently a finance director asked me about documentation on a cash deal necessary for compliance with the up and coming FTC regulations. Red Flags does not encompass cash deals; only transactions with more than one scheduled payment fall under The Red Flags Rule.
The short story here is that we are under The Red Flags Rule and should be utilizing this time to hone the policies and procedures under which everyone will have to operate someday. DID recommends that you spend a few minutes to review some of the information available concerning The Red Flags Rule. Two links that we have found especially helpful are:
http://www.ftc.gov/redflagsrule and http://www.afip.com
If you would like to discuss compliance with The Red Flags Rule please contact our office at 602.395.5555 or send us an email from the contact page.
Filed under News.