Deadline For FTC Compliance Approaching For State Charters
WASHINGTON – State-chartered credit unions are being reminded that they will become subject to Federal Trade Commission (FTC) enforcement of the Fair and Accurate Credit Transactions Act (FACTA) red flag rules on Dec. 31.
Those rules require institutions with “covered accounts” to establish and implement identify theft prevention measures. The rule has been in effect for federal charters and banks since late 2008, but the FTC repeatedly postponed enforcement of its red flag rules to allow Congress to reconsider whether FACTA required too many businesses to adopt red flag ID protection programs.
The FTC will begin enforcement on Jan. 1, 2011.