Business Round Table
How will the Red Flag Rule Affect You?
by Cheryl Baumgartner Medical Billing/Coding/Insurance
Cheryl Baumgartner 
Medical...
The Red Flag Rule goes into effect on January 1st 2008. This law will effectively cover every business entity in the U.S. The law was specifically written for "Financial Institutions", but the law requires that all vendor and suppliers to these businesses also be in compliance. Remember Financial institution is not limited to banks under Gramm, Leach, Bliley Safeguard Rule, but any business significantly engaged in providing financial products and services. Before you think you are in the clear, let me list all of those entities listed.
Under Section 114: State-chartered credit unions, non-bank lenders, mortgage brokers, automobile dealers, utility companies, and any other person that regularly participates in a credit decision, including setting the terms of credit.
Under section 315: State-chartered credit unions, non-bank lenders, insurers, landlords, employers, mortgage brokers, automobile dealers, collection agencies, and any other person who requests a consumer report from a consumer reporting agency.
Don't forget it is also "vendors and suppliers" of all these agencies since the agencies will be required to insure that the businesses they are doing business with are also in compliance.
A business now has no choice. You must have an Affirmative Defense Response System type program in effect of face the consequences.
Dec 28th 2007 08:55
Medical...The Red Flag Rule goes into effect on January 1st 2008. This law will effectively cover every business entity in the U.S. The law was specifically written for "Financial Institutions", but the law requires that all vendor and suppliers to these businesses also be in compliance. Remember Financial institution is not limited to banks under Gramm, Leach, Bliley Safeguard Rule, but any business significantly engaged in providing financial products and services. Before you think you are in the clear, let me list all of those entities listed.
Under Section 114: State-chartered credit unions, non-bank lenders, mortgage brokers, automobile dealers, utility companies, and any other person that regularly participates in a credit decision, including setting the terms of credit.
Under section 315: State-chartered credit unions, non-bank lenders, insurers, landlords, employers, mortgage brokers, automobile dealers, collection agencies, and any other person who requests a consumer report from a consumer reporting agency.
Don't forget it is also "vendors and suppliers" of all these agencies since the agencies will be required to insure that the businesses they are doing business with are also in compliance.
A business now has no choice. You must have an Affirmative Defense Response System type program in effect of face the consequences.
Dec 28th 2007 08:55
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Comments
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceIt is important news but it normally gets passed quietly and people don't know about it. Now here's the catch, they have to put these things in place but they don't know it. A year from now when the government starts looking for businesses not in compliance and they say "we didn't know" that's no excuse! Dec 28th 2007 09:28 |
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Jeff Greene
 Online Marketing Specialist/ConsultantThat one of the reasons that I am on a NEWS FAST for the rest of mt Life... It's a waste of time and energy to try and get important news on TV anymore... My Congoo service get me the stuff that I need to know about without all the fluff. I'm so glad that the Internet Community has learned to watch out for each other... If I ever need to know something, basically all I have to do is ask. A lot of people don't know about the resourcefulness of us online folks-- No matter where I move to on Earth, as long as I can log in, I'll always be informed, thanks to people like you! :) Dec 28th 2007 09:50 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceI don't even bother with the evening news anymore. Most of it is manipulated if important or stupidity mean to distract us from what is really important Dec 28th 2007 09:57 |
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Lee Poulson
 Health CoachI found out the truth about the main stream press years ago when I was able to watch C-span on cable. What I saw and heard first hand was totally different from what was reported later. Cheryl has a warrior/guardian heart. Thanks for watching our for us! Dec 28th 2007 12:43 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceI'm working on putting together something for the internet so I can share this information on the Red Flag Rule I'll keep everyone posted on it! Dec 28th 2007 12:55 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceIt pertains to information security, identity theft and business liability. For now you can get limited information at this discussion http://www.apsense.com/subject/27149.html. The rule itself is about 125 pages and I'm still wading through it. For all of my involvement in information security since I am an identity theft risk management specialist most of us only got the information on Dec 21st so as you can imagine we are really busting butt trying to work our way through it. Once I do I will be posting a blog with the information for all of you. Dec 28th 2007 13:45 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceOkay I have the set up to do a web conference on this. Send me a Private message with your e-mail so I can send you the invitation. I have scheduled it for Sun Dec 30th at 6pm EST I've allowed 30 minutes for the conference so let me know if you'd like to attend. Dec 28th 2007 14:07 |
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Jenny Stewart
Hi Cheryl, Without knowing anything more than the information on this page, it looks as this legislation is going to be very far reaching. There are many internet businesses operating worldwide, but registered in the US. It will be interesting to see who is caught in this. On first reading it could seem to include all payment processors and paypal. And that will affect nearly everyone on the internet!. Look forward to the next news Dec 29th 2007 21:40 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceI put in the question about international repercussions to our top ID theft person. I actually had someone on another site ask me about the outsourcing and if foreign companies would be affected. At first glance it would seem everyone has liability but just from little I know now I would say that you are safe Jenny. For payment processors based in the US this will affect them for Payment processors outside of the US more than likely not. I'll be sharing what I know on the conference tomorrow! Dec 29th 2007 21:50 |
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Cheryl Baumgartner
Medical Billing/Coding/Insurancehttps://www.yugma.com/index.php The conference ID is 136291007 6pm central I hope anyone with questions will be at this conference. I'll be sharing what I know about the Red Flag Rule and what will be required to comply. Dec 30th 2007 11:13 |
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Jenny Stewart
Hi cheryl Any chance of recording the call? Some of us will be tucked up in bed! LOL I am still fascinated on how this may affect payment processors - the majority are US based. Equally, many internet worldwide businesses are US busineses without registered overseas headquarters. (Paypal is an exception to this one as it does have Eurpean branches). Whatever the result is, it looks as the application of this legislation will be very interesting to follow. Dec 30th 2007 12:46 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceSince this is my first time doing this I'm a bit lost but I do believe there will be the ability to record it for playback later. I will let you know Dec 30th 2007 12:51 |
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Joseph Botelho
 Investing One Gram at a TimeHi Cheryl, Not sure how it all works but it sure sounds like a step in the right direction. Time will tell how many vendors follow the rules that set to be in place for January 1, 2008..........If it helps control the number one crime identity theft l am all for it............ Dec 30th 2007 14:30 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceI hope you'll join us on the webinar. Dec 30th 2007 15:57 |
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Cheryl Baumgartner
Medical Billing/Coding/InsuranceOkay no one joined which was a good thing since my computer had issues. Id did not want to recognize the conference ID. I will have to try again without scheduling it and just pick a time when we can all meet here on APSense and then sign in from here. Dec 30th 2007 18:20 |
This is important news, Cheryl!
As always, the Congress passes stuff that makes very little noise, until it affects your Life... I hope that folks here will pay attention to your information... Everything that we can learn about our businesses is of vital importance! :)
Dec 28th 2007 09:24