The Red Flags Rule was developed pursuant to the Fair and Accurate Credit Transactions (FACT) Act of 2003. Under the Rule, financial institutions and creditors with covered accounts must have identity theft prevention programs to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft.
The Rule applies to creditors and financial institutions. Federal law defines a creditor to be: any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit.
The Red Flag compliance deadline for Mortgage Brokers is fast approaching on August 1, 2009. Penalties for non-compliance can range up to $1,000 per day per customer. Don't delay! Ensure that your compliance is in accordance with the law. VanEd has enlisted IDBusiness to assist our students and members with compliance.
Click here to watch a brief 5-minute overview of the idBUSINESS Red Flag Compliance Module.
Meet the requirements of the Red Flag Rules that amend the FACT Act of 2003 from idBUSINESS by clicking on the logo below:
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