FTC delays Red Flags rule compliance for the third time

This is for the third time that The Federal Trade Commission has announced a delay for compliance with the identity theft prevention red flags rule. The delay this time is for three months from August 1, 2009, to November 1, 2009. Originally, the compliance originally was scheduled for November 1, 2008. The first delay came when it was shifted to May 1, 2009.

The entities which are covered by this rule are the creditors and financial institutions. Healthcare providers that extend delayed payment plans to patients are deemed “creditors” under the red flags rule.

This delay has been made with the aim of providing these affected entities more time to develop and implement written identity theft prevention policies and procedures for compliance with the rule, which is based on enabling regulations of provisions in the Fair and Accurate Credit Transactions Act of 2003.