FACT Act "Red Flag" Rules

FACT Act "Red Flag" Rules

Client News

Related Solutions

We help companies protect data, comply with evolving regulations, and respond to investigations and litigation.
Providing a strategic, multidisciplinary approach to help clients develop and use AI and to navigate the landscape of Big Data.
Is your company prepared to comply with the "red flag" rules implementing Sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 ("FACT Act")? On November 1, 2008, those rules will require many companies to identify and respond to account activities that are possible indicators ("red flags") of identity theft. And the rules will be enforced against a wide variety of other companies beginning on May 1, 2009. If you think that your company is not subject to the rules, think again. The regulations apply to banks -- but also apply to any financial institution or creditor that holds a covered transaction account -- a broad classification that includes companies such as automobile dealers, utility companies, mortgage brokers, telecommunications companies, finance companies, and non-bank financial services that provide money market accounts. According to the Federal Trade Commission, the rules are likely to affect over 11 million creditors. In our recent Email Alert, we offer some thoughts on the steps that these companies must take in order to comply with the "red flag" rules.

Notice

We appreciate your interest in WilmerHale. While we are pleased to have you contact us, please keep in mind that merely contacting WilmerHale does not create an attorney-client relationship. Such a relationship will not arise until the Firm agrees in writing to represent you in connection with a particular matter. Importantly, unless and until this has occurred, you should not provide us with any confidential information, and we have no duty to keep confidential any information that we may receive from you. Thank you for your understanding.

I Accept Cancel