The U.S. House of Representatives approved legislation amending the application of the "Red Flags" Rule Tuesday night. The bill, the Red Flags Clarification Act of 2010, was passed by voice vote and now heads to President Barack Obama's desk for signature into law.
According to Rep. Paul Broun (R-GA), one of the bill's champions in the House, the bill would exempt many small business owners and other unrelated businesses from the burdensome regulations, promulgated under the Fair and Accurate Credit Transaction Act of 2003 and due to be enforced by the Federal Trade Commission (FTC) at the end of this month.
"Similar to many federal regulations, several unintended consequences resulted from the Fair and Accurate Credit Transaction Act. As a result, accounting, legal and healthcare practices were subjected to unrelated and over burdensome regulations. I am pleased that my colleagues in both the House and Senate supported this bill," said Broun. "At a time when we are experiencing record high unemployment, Congress needs to provide our nation's job creators relief from unnecessary regulations. This legislation will do just that."
The bill previously passed the Senate last week.
Stay tuned to NACM for further updates on the bill and how it will affect you and your business.
Jacob Barron, NACM staff writer