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Talk:Fair and Accurate Credit Transactions Act

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This is an old revision of this page, as edited by 71.174.180.38 (talk) at 15:06, 12 October 2016 (definition of financial institution). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

definition of financial institution

Is there a definition of financial institutions? Are we talking about banks only or must insurnace companies also comply with FACTA regs? —Preceding unsigned comment added by 69.7.231.68 (talk) 16:42, 14 July 2008 (UTC)[reply]

Under the FTC's Red Flags Rule, a financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a consumer. Most of these institutions are regulated by the Federal bank regulatory agencies and the NCUA. Financial institutions under the FTC’s jurisdiction include state-chartered credit unions and certain other entities that hold consumer transaction accounts.

A transaction account is a deposit or other account from which the owner makes payments or transfers. Transaction accounts include checking accounts, negotiable order of withdrawal accounts, savings deposits subject to automatic transfers, and share draft accounts.

But note that the FTC Red Flags Rule applies not only to "financial institutions" but also to creditor: any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit. A definition so broad that many, many other types of businesses would end up being subject to FTC Red Flags Rule compliance. So, quite a few trade groups have lobbied Congress to change that. So far, members of Congress have asked the FTC to delay enforcing the Red Flags Rule at least five times. The FTC has so far delayed enforcement until after December 31, 2010. Bob_Cunningham 18:32, 13 June 2010 (UTC) —Preceding unsigned comment added by Bob@cdsinc.com (talk • contribs)

Section: The Red Flag Rule as a cause of Identity Theft

Cite error: There are <ref> tags on this page without content in them (see the help page).This section is confusing and needs editing by someone who knows which comments to change. For example:

Should:

"As the Red Flag rule widely defines creditors, many businesses (such as utilities)[20] }are not required to collect . . . ."

Read:

"As the Red Flag rule widely defines creditors, many businesses (such as utilities)[20] }are NOW required to collect . . . ."


Should:

"This policy is precisely contrary to the FTC’s advice to consumers that they should disclose their social security number to consumers . . . ."

Read:

"This policy is precisely contrary to the FTC’s advice to consumers that they should disclose their social security number to creditors . . . ."

DJ — Preceding unsigned comment added by 12.189.209.98 (talk) 22:03, 6 January 2012 (UTC)[reply]

Reference problem

see #6 Enigmamsg 17:22, 18 April 2013 (UTC)[reply]

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