Yesterday, the Federal Trade Commission (FTC) announced it is granting a six (6) month delay of enforcement on Red Flags compliance for its regulated entities. The FTC's jurisdiction for Red Flags enforcement is quite large. It covers finance companies, automobile dealers, mortgage brokers, utilities companies, telecommunications companies, and other entities who regularly extend credit to consumers. The FTC included this language in its explanation for the extension:
The FTC's jurisdiction also covers state-chartered credit unions for Red Flags enforcement. Thus, state-chartered credit unions' deadline for compliance with the Red Flags has been extended to May 1, 2009.
For federally-chartered credit unions, the FTC's extension does not provide relief. NCUA has Red Flags enforcement authority for federal credit unions. The compliance deadline is still November 1, 2008. NAFCU has drafted a letter to NCUA seeking parity with state-chartered credit unions on this issue.
Also, the FTC's delay does not provide relief to banks and thrifts regulated by the Office of Comptroller of the Currency (OCC) or the Office of Thrift Supervision (OTS). Unless the OCC and/or OTS extends their compliance deadlines banks would be subject to the November 1, 2008 deadline.
Editor's note: NCUA reportedly has no plans to extend the deadline for FCUs. (As of 10/24/08).