The Federal Trade Commission (FTC) issued Red Flag Rules, part of the Fair and Accurate Credit Transaction Act (FACT Act), that required businesses by June 1, 2010 to combat identity theft and protect personal information of customers, clients and employees.
Businesses that do not comply with the FACT Act risk statutory fines and investigations. The Red Flag Rules apply to financial institutions and creditors that use personal information to arrange or extend credit. Examples include:
• Cable providers
• Car dealers
• Credit card issuers
• Mortgage lenders
• Retailers
• Telecoms
• Utilities
• Accounting firms
• Building services
• Law firms
• Schools
• Banks
• Commercial lenders
• Financial advisors
• Mortgage brokers
• Securities brokers
• Subsidiaries of foreign banks
The Red Flag Rules require businesses create and implement a written program that is aligned with the company's information security policies and procedures, and IT practices.
If you have any questions with regard to bankruptcy or foreclosures, please contact our office at 1-800-303-2964. Rinne Legal is located at 1990 North California Blvd., Walnut Creek, California 94596, with additional offices in Fairfield, Oakland, and Sacramento. Rinne Legal offers free initial consultations.
