The Rule implements sections 114 and
315 of the Fair and Accurate Credit Transactions Act of 2003 ("FACT
Act"), as amended by the Red Flags Program Clarification Act of
2010. These rules enhance the ability of consumers to resolve
problems caused by identity theft and increase the accuracy of
consumer reports.
US Code: 15 USC 1681m(e)(4) Name of Law: Red
Flag Program Clarification Act of 2010
PL: Pub.L. 111 - 203 1088 Name of Law: Dodd Frank Wall Street
Reform and Consumer Protection Act,
Regarding the rules under
section 114 of the FACT Act (Red Flags and Card Issuers Rules), the
FTC's reduced population estimates for its PRA burden calculations
are largely attributable to two statutory changes since the last
clearance. First, since the FTC's preceding clearance request of
2009, President Obama signed the Dodd-Frank Wall Street Reform and
Consumer Protection Act, which, among other things, transferred
rulemaking responsibility to and established enforcement authority
for the CFTC and the SEC with respect to their respective
jurisdiction. Entities within the jurisdiction of the CFTC and SEC
include certain brokers, dealers, investment companies, investment
advisors futures commission merchants, retail foreign exchange
dealers, commodity trading advisors, commodity pool operators,
introducing brokers, swap dealers, and major swap participants. The
CFTC and SEC are now accounting for these entities in their
Paperwork Reduction Act estimated burdens. Second, in 2010,
President Obama signed the Clarification Act, which reduced the
number of creditors covered by the Red Flags Rule. While the
Clarification Act does not set forth specific industry exemptions,
it provides that, to be covered by the Red Flags Rule, creditors
must use consumer reports, furnish information to consumer
reporting agencies, or advance funds to consumers. As a result, the
number of creditors especially small businesses and service
providers has been greatly reduced. For the Address Discrepancy
Rule, under FACT Act section 315, however, FTC staff estimates that
the number of covered entities (users of consumer reports) has
increased from the approximately 1.66 million previously estimated
to 1,757,385 users of consumer reports, based on more recent
data.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Red Flags '12 SS fin_mtd.pdf
Address Discrepancies Rule: users of consumer rpts having to furnish to CRAs an address confirmation