Red Flags Rule and Identity Theft Prevention Programs

The Red Flags Rule (the "Rule") was designed to prevent identity theft. The Rule applies to all financial institutions and "Creditors." The term "Creditor" was initially defined under the Rule to include any business or entity that regularly sold or arranged to sell goods or services on open account where the purchaser could make deferred payments for those goods or services. However, accepting credit card payments does not make a business a Creditor under the Rule.

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