FTC Extends “Red Flag” Regulation Compliance Deadline to November 1

NFDA just received word that the Federal Trade Commission (FTC) has extended the compliance deadline for its “Red Flag” regulations from August 1 to November 1, 2009. The extension was granted to give creditors and financial institutions more time to review the regulations and develop and implement written identity theft prevention programs

The “Red Flag” regulations were issued as part of the Fair and Accurate Credit Transactions Act of 2003 and requires creditors and financial institutions to implement written identity theft prevention programs to deter, prevent and mitigate identity theft in connection with credit provided to consumers.

According to NFDA General Counsel Scott Gilligan, if your funeral home undertakes any of the following actions, it must institute and approve an identity theft prevention program by the new compliance deadline of November 1:

1. Regularly enters into arrangements with at-need or preneed consumers that allow them to pay for funerals in multiple installments.

2. Regularly sells preneed insurance policies as an agent for an insurance company that allows a consumer to purchase the policy through multiple installment payments.

3. Regularly refers consumers to consumer financing companies that extend credit to consumers to purchase funerals.

Gilligan has prepared funeral service-specific information about the FTC “Red Flag” regulations, including a “Sample Identity Theft Prevention Program.” NFDA members can download the information from the NFDA Website or find it in the July 2009 issue of The Director.

NFDA members with questions regarding these regulations can contact Gilligan at 513-871-6332 free of charge, another benefit of NFDA membership.

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