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Red Flag Rule Delayed Again at the Last Minute

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Talk about the 11th hour; the FTC waited until the last business day before the November 1st Red Flag Rule to postpone the rule for a third time.  Unlike the last two shorter postponements, however, this postponement buys a full 8 months for the estimated 11 million covered entities to reach compliance. 

Of course, in one way it is a disappointment to have the effective date put off yet again.  On the other hand, the postponement shows that lawmakers and the FTC are determined to give everyone a chance to get compliant in order to avoid any excuses when enforcement begins. 

Read last month’s NAIDDirect Article on the Red Flag Rule and the FTC Oct 30th Press Release regarding the latest postponement.