What information did the Red Flag Program Clarification Act of 2010 add to the original Red Flags rule?

The correct answer is B. The definition of what constitutes a creditor.. The Red Flag Program Clarification Act of 2010 amended the original Red Flags rule, which required certain financial institutions and creditors to develop and implement a written identity theft prevention program. The Clarification Act narrowed the definition of creditor to inclu

Health, Financial & Marketing Privacy

Question

Options

AThe most common methods of identity theft.
BThe definition of what constitutes a creditor.
CThe process for proper disposal of sensitive data.
DThe components of an identity theft detection program.

How the community answered

(15 responses)

A
7% (1)
B
80% (12)
D
13% (2)

Explanation

The Red Flag Program Clarification Act of 2010 amended the original Red Flags rule, which required certain financial institutions and creditors to develop and implement a written identity theft prevention program. The Clarification Act narrowed the definition of creditor to include only those who regularly and in the ordinary course of business advance funds to or on behalf of a person, based on an obligation of the person to repay the funds or repayable from specific property pledged by or on behalf of the person. This excludes creditors who advance funds for expenses incidental to a service provided by the creditor to that person.

Topics

#Red Flags Rule#FACTA#creditor definition#identity theft

Community Discussion

No community discussion yet for this question.

Full CIPP-US Practice