‘Red flags’ fix
Congress exempts docs from ID theft rule
The U.S. House of Representatives passed “red flags” legislation previously approved by the Senate that makes doctors exempt from the anti-identity theft requirements and safeguards banks and other creditors must follow.
The long-standing issue has been strongly opposed by advocates for physicians. “Currently, the Federal Trade Commission has broadly defined creditors to include physicians and other professionals like dentists and lawyers under the red flags rule,” said American Medical Association President Cecil Wilson in a news release. “The AMA is pleased that this legislation supports AMA’s longstanding argument to the FTC that physicians are not creditors.”
Uncertainty over the definition of “creditor” had resulted in an FTC position that physician practices, law firms, accounting offices and other small service businesses would need to comply with the regulation that calls for banks and creditors to have plans in place to prevent, identify and mitigate identity theft.