Red Flags Rule

In 2003, the US Congress sought to provide consumers with further protection from identity theft by enacting the Fair and Accurate Credit Act (FACTA), which amended the earlier Fair Credit Reporting Act (FCRA). FACTA directed the Federal Trade Commission (FTC) to issue regulations, now generally referred to as the Red Flag Rules (Rules), which require financial institutions and creditors to adopt policies and procedures that protect consumers from identity theft. Not-for-profit institutions, such as most colleges and universities, are not generally subject to the enforcement jurisdiction of FTC. However, FTC has interpreted its jurisdiction to cover not-for-profits when they engage in activities that, if undertaken by a for-profit entity, would be subject to FTC jurisdiction.

#University #compliance #FTC