Red Flag Rules the Policy of Identity Theft, BurtCollect.com Talks About it

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Identity thieves use people’s personally identifying information to open new accounts and misuse existing accounts, creating havoc for consumers and businesses. Financial institutions and creditors soon will be required to implement a program to detect, prevent, and mitigate instances of identity theft, The FTC will begin enforcing the Red Flag Rule on June 1st

Red Flag Policy

Are you Red Flag Compliant? The FTC will begin enforcing the Red Flag Rule on June 1st

The FTC will begin enforcing the Red Flag Rule on June 1st. BurtCollect.com, a Debt Collection Agency, is pleased to offer financial institutions and creditors tips on becoming Red Flag Compliant. When a Company is Red Flag Compliant? Many Industries manage sensitive information, that can be used for unethical, fraud, or identity thief when deals with sensitive data, is important to know if the agency is Red Flag Compliant.

Identity thieves use the information to personally identify people to open new accounts and misuse of existing accounts, creating havoc for consumers and businesses. Financial institutions and creditors, like Commercial Collection Agency, soon will be required to implement a program to detect, prevent and mitigate instances of identity theft. Federal Trade Commission (FTC), agencies of the federal bank regulators and the National Credit Union Administration (Ncua) have issued regulations (red flags) rules requiring financial institutions and creditors to develop and implement a written program to prevent identity theft in connection with fair and accurate credit transactions (FACT) of 2003. Programs must be implemented by November 1, 2008, and must provide identification, detection and response to trends, practices or specific activities - known as "red flags" - that could indicate theft identity. Who must comply with the rules red flags? Red flag rules apply to "financial institutions" and "creditors" and "covered accounts". Regulation of the financial institution is defined by the State or a national bank, state or federal savings and loan associations, mutual savings bank, state or federal, cooperative banks or other entity, which is considered as "deposit transaction" consumers. Most of these institutions regulated by federal bank regulatory agencies and the NCUA.

Financial institutions under the jurisdiction of the FTC to state chartered credit unions and certain other services that keep records of consumer transactions'. deposit transaction is a deposit or other account from which the owner makes payments or transfers. transaction accounts are current accounts, negotiable order of withdrawal accounts, deposits subject to automatic transfer and share draft accounts. A creditor is 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. Accepting credit cards as a form of payment does not in and of itself make an entity a creditor. Creditors include finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they, too, are to be considered creditors. Most creditors, except for those regulated by the Federal bank regulatory agencies and the NCUA, come under the jurisdiction of the FTC.

Complying with the Red Flags Rules

Under the Red Flags Rules, financial institutions and creditors, as a Collection Agency we must develop a written program that identifies and detects the relevant warning signs – or “red flags” – of identity theft. These may include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents. The program must also describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program. The program must be managed by the Board of Directors or senior employees of the financial institution or creditor, include appropriate staff training, and provide for oversight of any service providers. for more information related for the protection of your business, or debt collection visit our site

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Jesus Roquez
Debt Collection blog
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J Curtis
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