1. The Red Flags Rule
Your Guide to Compliance

2. Mary Louisa LHommedieu is experienced in a wide variety of corporate,health care, and employment matters. She devotes a substantial portion of her practice to the resolution of business and regulatory disputes in the health care, long-term care and pharmacy industries. She has litigated numerous cases in state and federal courts and before administrative bodies, and has authored articles and presented seminars on corporate, health care, employment and real estate topics.

Prior to joining the firm, Mary Louisa served as a judicial attorney for the Honorable William B. Hoffman of the Fifth District Court of Appeals, and as judicial attorney for the Honorable Patricia A. Cosgrove of the Summit County Court of Common Pleas.She graduated cum laude from the University of Akron School of Law in 1996, where she was a member and an Associate Editor of the Akron Law Review.

Mary Louisa is a member of the Cleveland and Ohio Bar Associations, as well as a member of the American Health Lawyers Association, OHCA (where she serves on the Facility Standards Committee), and AOPHA. She lives in Hudson, Ohio with her husband and two children.
3. The Red Flags Rule: Overview
What is the Red Flags Rule?
Who must comply?
What you have to do:
Implement a written Identity Theft Prevention Program
Steps to a compliant plan
Penalties for failure to comply
Questions and Answers
4. The Red Flags Rule: What is it?
What is the Red Flags Rule?
Requires all financial institutions and creditors to implement written programs to detect, prevent and mitigate identity theft
Rule has been in effect since January 1, 2008, with enforcement scheduled to begin November 1, 2009.
5. Who must comply?Financial Institutions
Financial Institutions include:
All banks, saving associations, and credit unions (even if they do not hold transaction accounts belonging to a consumer)
Any other person or business that directly or indirectly holds a transaction account belonging to a consumer
6. Who must comply?Creditors
Creditors include:
Definition is broad
Any business or organization that regularly defers payment for goods or services:
Utility companies
Health care providers
Telecommunications companies
Professional service providers
7. Who must comply?Creditors
Creditors include:
One who regularly grants loans, arranges for loans or the extension of credit or makes credit decisions
Finance companies
Mortgage brokers
Real estate agents
Automobile dealers
Retailers offering financing
8. Who must comply?Creditors
Creditors include:
Anyone who regularly participates in the decision to extend, renew or continue credit
Third-Party debt collectors
9. Who must comply?Covered Accounts

If your business is a bank, or a creditor you must now determine if you have Covered Accounts

Covered Accounts
Current and prior accounts covered
10. Who must comply?Covered Accounts

Two kinds of Covered Accounts

Consumer Account
High Risk Account
11. Who must comply?Covered Accounts
Two kinds of Covered Accounts
Consumer Account
Primarily for personal family or household purpose
Involves or is Designed to permit multiple payments
Credit card account
Mortgage loan
Automobile loan
Margin account
Cell phone account
Utility account
12. Who must comply?Covered Accounts
Two kinds of Covered Accounts
High Risk Accounts

Includes any other account that a financial institution or creditor offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the financial institution or creditor from identity theft, including financial, operational, compliance, reputation, or litigation risks