Houston, TX (PRWEB) October 15, 2008
To help businesses comply in a timely manner with section 114 of the Fair and Accurate Credit Transactions (FACT) Act established by the U.S. Federal Trade Commission (FTC) as a set of rules for regulating access to private information, Red Flags Compliant™ offers a program that includes the following:
- Red Flags Compliant™ Jumpstart Guide to help businesses understand the requirements and how to implement their compliance
- A listing in the Red Flags Compliant™ directory of compliant businesses
- An Identity Quarantine™ site seal to display on a website to indicate compliance
- A help desk ticketing system for customers to report possible identity abuses
- A live chat system for clients and customers to discuss potential discrepancies
- A Red Flags Compliant™ Certificate to print and display
- A Red Flags Compliant™ sample Red Flags Compliant plan
- A DIY Red Flags Compliant™ fill in the blanks Compliance plan
Under the new Red Flag requirements, established in November 2007, each financial institution and creditor is required to establish and implement reasonable policies, procedures and guidelines to identify possible risks to account holders or customers and ensure the safety and soundness of the institution or customer. These rules target the mortgage, finance, automotive, health care, and insurance industries and are intended to ensure that reasonable practices to protect their consumers from identity theft are in place. The deadline for compliance is November 1, 2008, and the penalties for non compliance include daily fines and potential civil litigation.
In developing these guidelines, businesses must be able to identify patterns, practices, and specific forms of activity that indicate the possible existence of identity theft. These guidelines must also be in compliance with the policies under section 326 of the USA Patriot Act 31 U.S.C. 5318(1) that require verification of the identity of persons opening new accounts.
What is a red flag? A red flag can be any pattern, practice, or activity that triggers the suspicion that identity theft may have occurred.
About Red Flags Compliant™
Red Flags Compliant™ is a complete program solution that supports the intention of the FACT Act. It provides a best-in-class program solution to help businesses manage their compliance process first and then support their clients and customers when possible abuses or discrepancies occurs with their accounts later. The Red Flags Compliant™ solution includes documentation, an easy-to-implement web site seal, help desk ticketing system, and live chat for long-term, secure customer relations.
For a free datasheet detailing the Red Flags Compliant solution, visit http://press.redflagscompliant.com/download/redflagdatasheet.pdf .
For more information about the Red Flags Compliant™ program , visit http://press.redflagscompliant.com .
Guidelines issued by the FTC, the federal banking agencies, and the NCUA (http://ftc.gov/opa/2007/10/redflag.shtm ) assist covered entities in designing their compliance programs.