Physician Offices Exempted From the Red Flags Rule!

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On November 30, 2010, bill S 3987, "Red Flags Program Clarification Act of 2010" was introduced to the Senate and was unanimously passed.   This bill provides clarity that small businesses, like physician offices, are not classified as "creditors" and therefore are exempt from the Red Flags Rule.

On December 7, 2010, the House of Representatives also agreed to the bill by a voice vote.  As of that date, it was on it's way to the President's desk for signature.

S 3987 amends the Fair Credit Reporting Act (FCRA) for the purposes of narrowing the definition of the term "creditor" to include only entities that use consumer reports, furnish information to consumer reporting agencies, or to others who extend credit.