Publication Date: October 14, 2008 Author: Jeff Baker, Director Policy Liaison and Implementation, Federal Student Aid Summary: FTC "Red Flags" Rules Apply to Institutions Participating in the Perkins Program Posted on 10-14-2008 On November 9, 2007, the Federal Trade Commission (FTC), the Federal bank regulatory agencies, and the National Credit Union Administration jointly issued regulations (72 FR 63718) requiring financial institutions and creditors to develop and implement a written identity theft prevention program to detect, prevent, and respond to patterns, practices, or specific activities that may indicate identity theft and are known as "red flags." The "Red Flags Rules" became effective January 1, 2008 with a mandatory compliance date of November 1, 2008. Further information about the "Red Flags Rules" and the actual text of the regulations is available on the FTC Web site at http://www.ftc.gov/opa/2007/10/redflag.shtm. The purpose of this announcement is to inform institutions that the "Red Flags Rules" apply to institutions participating in the Federal Perkins Loan Program and may apply to other credit programs administered by an institution. Although these "Red Flags Rules" are not issued by the Department of Education, we wanted to provide a helpful reminder of these requirements and suggest that an institution participating in the Federal Perkins Loan Program review these regulations with its attorneys to ensure that it will be in compliance by the November 1, 2008 deadline. |