Red Flags Rule: The 'wolf' finally arrives -- no, really
JIM HENRY
If any dealers and F&I managers don't know by now that the Federal Trade Commission expects to start enforcing the Red Flags Rule next week -- on Tuesday, June 1, to be exact -- don't blame Dave Robertson.
Robertson is executive director of the Association of Finance and Insurance Professionals. He's had a lot of practice warning about the Red Flags Rule, which requires businesses involved in credit transactions to adopt written plans to detect and respond to instances of possible identity theft.
The rule first went on the books to curb identity theft in 2008, only to have enforcement postponed several times.
Last week during a Web-based seminar hosted by Automotive News, Robertson acknowledged the postponements have created a certain amount of "Wolf! Wolf! Syndrome."
But he said the Red Flags Rule is too important to ignore.
Said Robertson: "If you get sued and you haven't done anything, you can pretty much kiss your you-know-what goodbye, because everything bad that can happen, will happen."
Robertson is executive director of the Association of Finance and Insurance Professionals. He's had a lot of practice warning about the Red Flags Rule, which requires businesses involved in credit transactions to adopt written plans to detect and respond to instances of possible identity theft.
The rule first went on the books to curb identity theft in 2008, only to have enforcement postponed several times.
Last week during a Web-based seminar hosted by Automotive News, Robertson acknowledged the postponements have created a certain amount of "Wolf! Wolf! Syndrome."
But he said the Red Flags Rule is too important to ignore.
Said Robertson: "If you get sued and you haven't done anything, you can pretty much kiss your you-know-what goodbye, because everything bad that can happen, will happen."
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