January 06, 2009
Get your practice ready for the “Red Flags Rule”
This year, many veterinary practices will be required to comply with the federal “Identity Theft Red Flags and Address Discrepancies Under the Fair and Accurate Credit Transactions Act of 2003,” otherwise know as the “Red Flags Rule.” A Federal Trade Commission website helps explain the rule –designed to fight identity theft – and lays out the terms under which a business would need to follow it. Under the rule, which exists on the books now but will not be enforced until May 1, businesses that qualify as “creditors” and have “covered accounts” must develop and implement identity theft prevention programs. Accepting credit cards as payment does not necessarily qualify a business as a” creditor” under the rule, but businesses that bill consumers after services are provided are considered creditors.