WASHINGTON — Saying that some institutions expressed confusion about the Red Flag requirements, the Federal Trade Commission said today that they won't take any enforcement actions on state-chartered credit unions until May 1.
Federal credit unions, who are under the jurisdiction of the NCUA, must still comply with the Nov. 1 deadline.
The rules require financial institutions to identify Red Flags that could make them vulnerable to security breaches and come up with plans to prevent them.
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The FTC said it was responding to complaints from financial institutions that said "because they generally are not required to comply with FTC rules in other contexts, they had not followed or even been aware of the rule making, and therefore learned of the rule's requirements too late to be able to come into compliance by Nov. 1, 2008. The commission's delay of enforcement will enable these entities sufficient time to establish and implement appropriate identity theft prevention programs in compliance with the rule.
NCUA spokesman John McKechnie said his agency has no plans to delay the Nov. 1 deadline for federal credit unions because "that's the date they've been aware of for about a year and they should have plans in place."
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