House bill excludes some businesses from Red Flag Rules
The House of Representatives passed H.R. 3763, a bill that amends the Fair Credit Reporting Act to provide for an exclusion from Red Flag Guidelines for certain businesses.
As passed by the House, the following would not be considered “creditors” under the new Red Flag Rules:
- a health care practice with 20 or fewer employees
- an accounting practice with 20 or fewer employees
- a legal practice with 20 or fewer employees
Other businesses might also be excluded, if the business
- knows all of its customers or clients individually;
- only performs services in or around the residences of its customers; or
- has not experienced incidents of identity theft and identity theft is rare for businesses of that type.
The bill has now been referred to the Senate Committee on Banking, Housing, and Urban Affairs for consideration.
Cross-posted from PogoWasRight.org