The Federal Trade Commission said it would delay enforcement of whats known as the red flag rule to May 1, 2009, from the scheduled compliance date of Nov. 1. The rule requires that creditorsbroadly defined and construed to include healthcare providers that accept deferred paymentadopt written programs to identify and respond to indicators of identity theft.
According to an enforcement policy issued today, FTC staff learned during outreach efforts on the rule that many affected organizations were unaware the rule would apply to them and didnt have time to be in compliance by Nov. 1. Recognizing the confusion and uncertainty with the deadline looming, the commission concluded it would be neither equitable for the covered industries nor beneficial to the public to stick with the date. -- by Gregg Blesch
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