The FTC today announced that it would, for the fourth time, delay enforcement of the Identity Theft Red Flags Rule. The enforcement date is now June 1, 2010 for creditors and financial institutions subject to FTC jurisdiction. The agency stated that the delay was requested by members of Congress, who are currently considering a bill that would limit the rule's scope. That bill (which would exclude certain entities with 20 or fewer employees from the rule's definition of "creditor" and also would provide a mechanism for other entities to apply for that exclusion) recently passed the House by a margin of 400 to 0 and was referred to the Senate Committee on Banking, Housing and Urban Affairs. Please refer to our recent post regarding other developments that limit the rule's application.
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