DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

House Bill to Limit Scope of Red Flags Rule with Amended "Creditor" Definition

Posted on November 20, 2010 by Dissent

Hunton & Williams have an informative law blog, Privacy and Information Security Law Blog, and if you haven’t already bookmarked, you should.   Yesterday they wrote:

On November 17, 2010, Representative John Adler (D-NJ) introduced the Red Flag Program Clarification Act of 2010 (H.R. 6420) to “amend the Fair Credit Reporting Act with respect to the applicability of identity theft guidelines to creditors.”  The bipartisan bill seeks to limit the scope of the FTC’s Identity Theft Red Flags Rule, which requires “creditors” and “financial institutions” that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect and respond to patterns, practices or specific activities that indicate possible identity theft.

If passed, H.R. 6420 would add a more narrow definition of “creditor” to Section 615(e) of the FCRA, which reads, “any person who regularly extends, renews, or continues credit; any person who regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who participates in the decision to extend, renew, or continue credit.”  In response to concerns that the current FCRA definition improperly extends the Red Flag’s scope to implicate certain entities, including attorneys, law firms and health providers, the proposed definition would exclude those “that advance funds on behalf of a person for expenses incidental to a service provided by the creditor to that person.”

[…]

What does that last exclusion mean?  What do they mean “advance funds… for expenses incidental…?” Can anyone translate that into plain English, please?  If a non-physician healthcare provider allows a patient to “pay them later,” does that constitute an “advance of funds?”

In May 2010, the American Psychological Association had reported that

the House passed a bill that would exempt from the Red Flags Rule psychology (and other health care) practices with 20 employees or fewer. …. The House bill, H.R. 3763, passed with 400 votes and no objections. The APA Practice Organization supports the passage of similar Red Flags Rule legislation in the Senate. The Senate has not yet taken action on this legislation.

H.R.3763 is not the same bill as H.R.6420.  The former passed the House in October 2009 and has yet to see any action in the Senate.   So why has the Senate seemingly done nothing on this issue?


Related:

  • Missouri Adopts New Data Breach Notice Law
  • Qantas obtains injunction to prevent hacked data’s release
  • Ransomware attack disrupts Korea's largest guarantee insurer
  • Theft from Glasgow’s Queen Elizabeth University Hospital sparks probe
  • Global operation targets NoName057(16) pro-Russian cybercrime network in Operation Eastwood
  • More than 100 British government personnel exposed by Ministry of Defence data leak
Category: Uncategorized

Post navigation

← Penalty-based system could make you sick
(update and correction) North Carolina Baptist Hospital/Wake Forest University Baptist Medical Center breach →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Government will ‘robustly defend’ compensation claims from Afghans put at risk by data breach
  • Authorities released free decryptor for Phobos and 8base ransomware
  • Singapore Facing ‘Serious’ Cyberattack by Espionage Group With Alleged China Ties
  • Missouri Adopts New Data Breach Notice Law
  • Qantas obtains injunction to prevent hacked data’s release
  • Ransomware attack disrupts Korea’s largest guarantee insurer
  • Theft from Glasgow’s Queen Elizabeth University Hospital sparks probe
  • Global operation targets NoName057(16) pro-Russian cybercrime network in Operation Eastwood
  • More than 100 British government personnel exposed by Ministry of Defence data leak
  • New TeleMessage SGNL Flaw Is Actively Being Exploited by Attackers

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • 𝐔𝐠𝐚𝐧𝐝𝐚 𝐨𝐫𝐝𝐞𝐫𝐬 𝐆𝐨𝐨𝐠𝐥𝐞 𝐭𝐨 𝐫𝐞𝐠𝐢𝐬𝐭𝐞𝐫 𝐚𝐬 𝐚 𝐝𝐚𝐭𝐚‑𝐜𝐨𝐧𝐭𝐫𝐨𝐥𝐥𝐞𝐫 𝐰𝐢𝐭𝐡𝐢𝐧 𝟑𝟎 𝐝𝐚𝐲𝐬 𝐚𝐟𝐭𝐞𝐫 𝐥𝐚𝐧𝐝𝐦𝐚𝐫𝐤 𝐩𝐫𝐢𝐯𝐚𝐜𝐲 𝐫𝐮𝐥𝐢𝐧𝐠.
  • Meta investors, Zuckerberg reach settlement to end $8 billion trial over Facebook privacy violations
  • ICE is gaining access to trove of Medicaid records, adding new peril for immigrants
  • Microsoft can’t protect French data from US government access
  • Texas Enacts Electronic Health Record Data Localization Law
  • Upstate NY county clerk again refuses to enforce Texas abortion judgment
  • Attorney General James Leads Coalition Urging Congress to Protect Americans from Masked ICE Agents

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.
Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report