Federal Trade Commission’s Red Flags Rule Begins August 1, 2009

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 21, 2009 --

Salt Lake City, UT – July 21, 2009 – In less than two weeks (August 1, 2009), the Federal Trade Commission will require all financial institutions and creditors with covered accounts to comply with the Red Flags Rule. According to the FTC, “financial institutions or creditors that violate the Rule may be subject to civil monetary penalties.” (For more information, visit http://ftc.gov/bcp/edu/pubs/articles/art10.shtm.) The FTC further stated that this rule is designed to reduce identity theft by requiring organizations to “implement a written Identity Theft Prevention Program designed to detect the warning signs – or ‘red flags’ – of identity theft in their day-to-day operations, take steps to prevent the crime, and mitigate the damage it inflicts.” An organization’s Identity Theft Prevention Program, also known as a Red Flag Policy, must be appropriately tailored to its size, risks, and complexity. To help mortgage brokers and lenders comply with the Red Flags Rule, Mortgage Compliance Advisors announced the launch of its succinct, customizable Red Flag Policy template.

Mortgage Compliance Advisors (MCA) is partnering with Hudson Cook, LLP, to offer this template, The Mortgage Industry Guide to the Red Flags Rule. The template contains required Red Flag policies and procedures, which include: identifying and detecting red flags, preventing and mitigating identity theft, and periodically updating the program. To create a customized Red Flag Policy, clients may purchase the Do-it-yourself template; or the client may provide MCA with basic information about the organization, and MCA can fill out the policy template. In order to comply with the Red Flags Rule, organizations must have the policy in place by August 1, 2009.

For more information on the Red Flag Policy Template, visit http://mortgagecomplianceadvisors.com/red_flag_rule.php?CampaignID=135 or call 877-226-3217 .

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