The American Medical Association again asked the Federal Trade Commission to abandon its position that what's known as the “red flags” rule—which targets identity theft in credit transactions—should apply to physicians and their practices because they bill patients. In a new letter to FTC Chairman Jon Leibowitz, the AMA, American Dental Association, American Osteopathic Association and American Veterinary Medical Association point to a recent court decision they say supports their complaint that the FTC has overstepped what Congress intended with the Fair and Accurate Credit Transactions Act of 2003. In that case, brought by the American Bar Association in U.S. District Court in Washington, the judge agreed that lawyers can't be considered creditors just because they invoice clients. The FTC has delayed enforcement of the rule, most recently pushing it back to June 1. The rule calls for organizations that extend credit to have written plans describing how they will watch for and respond to identity theft “red flags” in their billing operations. The original enforcement date was Nov. 1, 2008.
Late News: AMA again asks FTC to rethink 'red flags' rule for physicians
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