What information did the Red Flag Program Clarification Act of 2010 add to the original Red Flags rule?
What information did the Red Flag Program Clarification Act of 2010 add to the original Red Flags rule?
The Red Flag Program Clarification Act of 2010 added a definition of what constitutes a creditor. This legislation clarified that the original Red Flags Rule, which is aimed at preventing identity theft, should not apply to entities that extend credit only for incidental expenses, such as lawyers and health providers.
In 2010 it was determined that the Red Flags Rule does not apply to creditors who extend credit only for “expenses incidental to a service” (such as lawyers and health providers)
The Red Flag Program Clarification Act of 2010 was passed in response to concern that the definition of creditor extended to implicate unintended entities, such as attorneys and health providers, simply because they allow customers to pay their bills after the time of service