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FTC Red Flags Rule Enforcement Delayed

The FTC has announced that it is again delaying enforcement of the Identity Theft “Red Flags” Rule until June 1, 2010.  One of the controversial aspects of the Rule was its applicability to health care professionals, particularly small or solo practitioners.  The Rule has been delayed previously on two separate occasions. 

As the regulatory situation has grown more difficult, a number of health and other professionals have approached Congress seeking a legislative solution. Congress has responded with quick movement on a bill, HR. 3763, which would exclude licensed health practices with fewer than 20 people in a practice from reporting under the Fair Credit Reporting Act and from the Red Flags Rule. The bill was introduced in the House and passed the floor a brief three weeks after introduction. It is now pending before the Senate where momentum could slow down in response to the FTC’s action postponing implementation of the regulation.

NASW provided information about the identity theft regulations in the June 2009 LDF Legal Issue of the Month article available at https://www.socialworkers.org/ldf/legal_issue/2009/200906.asp. For more information go to http://www.ftc.gov/opa/2009/10/redflags.shtm and http://thomas.loc.go

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