Red Flag Laws extended for Doctors
November 3, 2008 – 3:21 pm The New Red flag laws were set forth last November as part of the Fair and Accurate Credit Transaction Act of 2003. The new laws were designed to make entities that extend credit to consumers in exchange for goods and or services, make a plan to detect identity theft was well as the possible warning signs. There has been some gray area however in whom the new laws are going to affect. The new laws were meant to apply to health care providers, but they were not aware.
Health care Providers will be getting an extension on the new laws. The previous deadline was Nov. 1 but after the misunderstanding heath care providers are going to be given till May 1, 2009 to comply.
The Red Flag laws define a creditor as entities that maintain so-called covered accounts, or someone that is designed to handle multiple transactions as part of an ongoing relationship. Doctors don’t typically collect their payment from the patience before they leave. The doctor will typically send the bills through the insurance company first. The FTC defines a covered account as one that has a foreseeable risk if identity theft. This of course is just about every account for a doctor.
The new Red Flag laws are designed to help companies on their own protect your identity. However we have seen in the past that even if a company has a system for preventing identity theft that the procedures and practices are not always fallowed. LifeLock can help protect you and your family from identity theft. If you would like a discount on LifeLock use LifeLock Promotion code, Defense.
Tags: extended, laws, Life Lock, LifeLock, Promo code, promotion code, red flag
One Response to “Red Flag Laws extended for Doctors”
I don’t know why doctors thought they would be any different when it comes to complying to the new laws. I wouldn’t want someone using my identity to get medical treatment and then try and stick me with all the bills.
By Michael Ball on Dec 4, 2008