Amended Red Flags Rule now in effect — are you still a creditor?
The FTC’s amended definition of ‘creditor’ within the Red Flags Rule is now in effect. The definition is narrower in scope, but under it a franchisor may still qualify as a ‘creditor’. For instance, if you use a third-party servicer to obtain credit information on your behalf, or if you finance franchisee purchases of required equipment, you may be a ‘creditor’.
Initially promulgated in November 2007, the Identity Theft Red Flags Rule was created to fight the rising tide of identity theft in the US. The Red Flags Rule requires ‘creditors’ and ‘financial institutions’ who administer ‘covered accounts’ to develop and implement a written programme to identify, detect and respond to ‘red flags’ or patterns or activities that suggest attempted identity theft in connection with customer accounts that they administer. The Red Flags Rule became effective on 1 January 2008, with actual enforcement ultimately beginning on 31 December 2010…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The interpretation of the scope of application of the investor’s right to withdraw from any contracts for the placement of door-to-door financial products has again captured the attention of all players.
Tax Newsletter — July/August 2014: SAT strengthens reporting request under China CFC rules; and more
DLA Piper has released the July/August edition of its Tax Newsletter, which provides a review of PRC and Hong Kong tax developments.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions