RED FLAG POLICY - A CHANGE THAT REPOSSESSION COMPANIES CAN ILL-AFFORD TO IGNORE!
1 NOVEMBER 2008 IS THE DEADLINE.
IN NOVEMBER 2007, THE U.S. FEDERAL TRADE COMMISSION (FTC) ESTABLISHED A SET OF RULES FOR REGULATING ACCESS TO PRIVATE INFORMATION. THESE RULES TARGET THE FINANCE, AUTOMOTIVE, MORTGAGE, HEALTH CARE AND INSURANCE INDUSTRIES.
CONSUMERS WILL BE ENCOURAGED TO PROTECT THEMSELVES FROM POTENTIAL FINANCIAL HARM BY ENSURING THAT ALL COMPANIES THEY DO BUSINESS WITH ARE IN COMPLIANCE WITH THE NEW RULES.
WHAT IS A RED FLAG? A Red Flag can be any pattern, practice or activity that triggers the suspicion that identity theft may have occurred.
WHO MUST COMPLY? Any and all financial institutions, organizations, and companies that:
- Amass and utilize confidential, personal customer/end-user information
- Work with a credit reporting bureau
- Retain/maintain accounts for personal or business usage
AS REPOSSESSION COMPANIES ARE SUPPLIERS TO THE FINANCIAL INSTITUTIONS, YOU TOO MUST COMPLY AS YOU DEAL WITH THEIR CUSTOMER’S INFORMATION EG., THE DEBTORS!
Non-compliance fines range from $1,000 to $2,500 for each violation and could bring into play class action suits.
ConnecTGo, Inc. has already provided some of it’s clients with the 13-page Red Flag Policy that It has developed for the Repossession Industry. It’s Federal Law, like it or not! Your company needs to be in full compliance with the FACT Act Identity Theft Red Flag and Address Discrepancy rulings.
The 13-page Red Flag Policy meets all the requirements that Financial Institutions need to fulfill their own legal requirements, via their supplier network – namely YOU!
On 1 November, 2008, companies with “covered accounts” must be in compliance with the Fair and Accurate Credit Transactions Act (FACT Act) Identity Theft Red Flag (FACT Act Section 114) and Address Discrepancy (FACT Act Sections 114 and 315) rulings.
BENEFITS
- Enchanced customer confidence and satisfaction
- Minimizes fraudulent activity that costs time and money to investigate
- Improvement in profits
- Industry specific standard that meets all the requirements of the FACTA laws and all Financial Institutions requirements
- Automates FACT Act compliance
- A solution that if you implement correctly will provide proactive detection of compromised accounts before fraud occurs
- Increases new account approvals of non-verified name at an address
- Reduces manual review, operational expenses and fraud losses
- ConnecTGo, Inc. provides an updating support service for the Red Flag Policy
Call 330 357 5101 and/or e-mail salmarston@connectgo.biz to place your order.
‘Never a dull moment in our industry – CHANGE will continue to drive us, be it of our own volition or one from external influences – in this case, OUR CLIENTS!
SUSAN A L MARSTON, MBA
President – ConnecTGo, Inc.
…..the right time…..the right team…..
salmarston@gmail.com
www.connectgo.biz
