In light of persistent confusion surrounding compliance with the Federal Trade Commission's (FTC's) "Red Flags" Regulations, NACM staff members have scheduled a meeting with officials from the FTC in July in order to discuss the lingering uncertainty many business-to-business (B2B) creditors feel about the regulations and whether or not they apply to their companies.
Read below for the most current updates on Red Flags regulations.
According to some NACM members, the Federal Trade Commission's (FTC's) "Red Flags" Rules are unfair to business creditors and potentially detrimental to their companies' finances. In response to last week's eNews story, "Eye On the Hill: NACM Considers Stance on 'Red Flags' Rules, Among Other Issues," some credit professionals have voiced their opposition to the regulations noting that they agree with the goals, but feel there should be a separate set of simplified guidelines for commercial creditors.
Despite the Federal Trade Commissionâ€™s (FTCâ€™s) recent decision to delay the implementation of their â€śRed Flagsâ€ť rules from May 1, 2009 to August 1, 2009, compliance with these regulations has the potential to present companies with yet another source of unnecessary stress. NACMâ€™s Government Affairs Committee is considering its position on the regulations and whether or not the FTC has overstepped its mandate in making them apply to businesses.
Amendments to the Fair and Accurate Credit Transactions Act of 2003 (FACTA) that went in effect in January 2008 outlined that organizations must implement a written program to detect, mitigate and respond to the surging risks of identity theft. This requirement was a multi-agency initiative that impacts businesses of all sizes.
Even a cursory glance at the District of Columbia these days reveals a wealth of issues related to the world of B2B credit management. In their quest to accelerate economic recovery, Capitol Hill has taken up the mantle of topics such as bankruptcy, data security and accounting, all of which have ramifications for the countryâ€™s credit professionals.