Bill Introduced to Exempt Category of Small Businesses from Compliance with Red Flags Rule
Representative John Adler introduced H.R. 3763 on October 8 to amend the definition of “creditor” in the Fair Credit Reporting Act to reflect the following exclusions:
(A) a health care practice with 20 or fewer employees;
(B) an accounting practice with 20 or fewer employees;
(C) a legal practice with 20 or fewer employees; or (D) any other business, if the Commission determines, following an application for exclusion by such business, that such business–
(i) knows all of its customers or clients individually;
(ii) only performs services in or around the residences of its customers; or (iii) has not experienced incidents of identity theft and identity theft is rare for businesses of that type.
The bill has currently been referred to the House Committee on Financial Services.
For more information, please contact Abby Pendleton, Esq. or Jessica L. Gustafson, Esq. at (248) 996-8510 or visit The HLP website.