Red Flag Rules and the FACT Act

FACT Act-amendment to the Fair Credit Reporting Act to help reduce identity theft. The act established Red Flag Rules.

A business that pulls credit or extends financing must be certified
under the Red Flags Compliant rules.

Identification of Possible Instances of Identity Theft (Red Flag Rules)

The act established so called Red Flag Rules to create regulations regarding identity theft prevention.

A key item was the requirement that mortgage lenders provide consumers with a Credit Disclosure Notice.

The Red Flag Rules apply to a very broad list of businesses including "financial institutions" and "creditors" with "covered accounts".

For a better understanding of Red Flags Compliance, you can
find a summary of the Red Flags Rules to find out if your business
needs to to be certified compliant on the Wikipedia site, see:

Fair and Accurate Credit Transactions Act

Additonal information to Get Your Company Compliant

This IS the Law NOW. Even though enforcement has not begun
the law is in place and you have exposure to huge Federal fines
as well as local Civil Litigation if you are discovered to not be in
compliance (which is to say, CERTIFIED Red Flags Compliant).