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.
Over the past several months, NACM has worked diligently with the FTC to educate and inform B2B creditors on how best to comply with the "Red Flags" Rules through two teleconferences led by FTC officials, as well as the publication of several of articles in NACM's eNews and Business Credit. The many questions and concerns voiced by NACM and its members regarding the specifics of the regulations partially contributed to the FTC's decision to delay mandatory compliance with them from May 1, 2009 to August 1, 2009. However, despite continued efforts on the part of NACM and the FTC to clarify the regulations and ease the burden of compliance, many NACM members have noted that they're still uncertain about whether or not the regulations apply to them, and whether or not what they've done is enough to protect themselves from penalties. With the new deadline approaching, NACM saw the need to air the concerns of its members directly to the FTC and also to offer its assistance to the agency in crafting more concise guidance for B2B creditors.
Prior to meeting with the FTC, NACM is seeking comments from you, the member, regarding your experience with the regulations. If you have any specific comments or questions you'd like to share with FTC officials, be sure to send them via email to firstname.lastname@example.org by July 10, 2009. Your experiences and personal testimony will allow NACM staff to present the FTC with a clearer, more complete set of facts regarding how the regulatory burden will fall on B2B creditors while also laying the groundwork for any future guidance on the matter.
Stay tuned to NACM's eNews and the advocacy page on NACM's website for updates.
Jacob Barron, NACM staff writer