Website Red Flag Identity Theft Policy

When To Use

For use by websites for compliance with the U.S Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003 (FACTA), which requires "creditors" with "covered accounts" to adopt and implement an identity theft policy and program by May 1, 2009.

Failure to comply may result in civil lawsuits by consumers for actual damages -- and if actual damages can't be proved, nominal damages. Civil litigants may also recover punitive damages and attorney's fees. In addition, The FTC may initiate administrative proceedings.

The catch is that many small ecommerce businesses may be classified as "creditors" with "covered accounts" -- and as a result they may be surprised that the Red Flag rules apply to them.

"Covered Accounts" are accounts that are used primarily for personal, family, or household purposes, and that involve multiple payments or transactions;and any other account, including a business account, that poses "a reasonably foreseeable risk to customers or the safety and soundness of the ... creditor from identity theft, including financial, operational, compliance, reputation or litigation risks."

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This is not a static downloadable form -- my embedded logic selects, orders, arranges, and formats my carefully worded clauses from the database and "intelligently" assembles your document -- you're empowered to create a near-custom agreement with 1000's of meaningful variations.

Features And Options

• Both the Identity Theft Policy and Resolution are provided
• Provides for provisions for both purpose and scope of Policy
• Provides for distribution in both hard copy and electronic delivery
• Defines "Red Flags" and provides examples
• Provides policies for suspicious documents and activities
• Provides for policy regarding response to Red Flags
• Provides for staff training
• Provides for policy updates
• Provides for policy administration
• Provides for oversight of service providers

Unlimited Drafting Benefit

One of the great benefits of our online contract drafting service is that if you're not sure how to structure your transaction, or if you want to develop "fall back" positions for negotiation purposes, you may draft alternate variations of this document at no extra charge to assist you in developing your strategies.

If you have any questions, contact me.