Red Flag
The FTC's release of the final red flag regulations requires financial institutions to develop and implement a program that thoroughly addresses the identification, detection and response to red flags. Though the deadline for compliance was November 1, 2008, many financial institutions do not have a simple comprehensive solution in place. SettlementOne has created a complete solution that helps clients meet the federal requirements without drastically impacting compliance staff.
On November 9, 2007 the FTC, along with several other financial agencies jointly issued the final rules and guidelines activating section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). The rules implementing section 114 require financial institutions or creditors to develop and implement a written Identity Theft Prevention Program to detect, prevent and mitigate identity theft. These rules and guidelines became effective January 1, 2008, and required financial institutions to comply by November 1, 2008.
SettlementOne's Red Flag Detect helps safeguard lenders from high-risk transactions, reduces false positives, maintains compliance and better identifies fraudulent information. This automated feature compares consumer provided information against a national system and government lists, alerting you to potentially fraudulent information at the inception of an account. Our comprehensive Red Flag Solution also offers a customizable Policy & Procedures manual and an Authentication Site to appropriately respond to the red flags identified.
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