The Federal Trade Commission has extended from Nov. 1 to May 1 the compliance deadline for its Red Flags Rule, which requires all financial institutions and creditors to create an identity theft program. The FTC considers any powersports dealership that offers financing a creditor.
But the compliance deadline for the Address Discrepancy Rule, which was passed in conjunction with the Red Flags Rule, remains Nov. 1. This rule requires dealers to create policies and procedures for when they receive an address discrepancy notice from a consumer reporting agency.
Never heard of any of this? You’re probably not alone. In announcing the extension, the FTC noted that “some industries and entities within the FTC’s jurisdiction have expressed confusion and uncertainty about their coverage under the rule.”
To help automotive dealers, the National Automobile Dealers Association has published A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft. Read an extract and learn about the possible fines at the Web site of the New Hampshire Automobile Dealers Association.