FACTA — the Red Flags Rule

As you know, the so-called Red Flags Rule, otherwise known in Government-speak as FACTA, goes into effect on June 1, 2010, requiring most companies to develop a program to recognize and combat threats of identity theft. This message is intended as a “public service” to CMA members on the subject.

A good starting point is the FTC’s brochure on FACTA, which can be accessed at http://www.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml . On the first page of that site is another link to a lengthy .pdf brochure that represents the FTC’s description of the rule, whom the rule covers and how companies should proceed to comply with it. Unfortunately, the brochure is not specific about exactly what to do.

In addition, Mike Joncich of CMA’s Adjustment Bureau has developed a PowerPoint presentation of how the Rule works and what companies should do to comply with it.

Finally, a CMA Webinar on “FACTA and the Red Flags” is scheduled for May 6 from 9:00 to 10:00 a.m. The cost for members is $79, although if you haven’t already taken advantage of your “one free Webinar” that’s part of most CMA membership packages you might want to use it for this one. The presenter is Brenda Terreault, who is with the collection dept. of NACM Oregon and has a very impressive resume’ as a former North Carolina Supreme Court clerk and as a former practicing attorney.

You need to do what you can to help your company comply with the Red Flags Rule, assuming your company is covered by the Rule as we are advised most companies likely are. The information in this message should afford you the opportunity to become as well informed as possible on this important subject.

Richard Kaufman, CAE
Credit Management Assn.