Monday, August 03, 2009

FTC "Red Flag Rule" enforcement delayed

The Federal Trade Commission is delaying enforcement of "identity rules affecting lawyers" until Nov. 1st., according to a article last week. Enforcement, which has already been put off twice before, was to begin Saturday.

"Lawyers, doctors and other professionals have protested the FTC's broad interpretation of 'creditors' to include businesses that bill clients some time after providing services," the article said, with the American Bar Association having threatened to file suit to prevent enforcement. ( See prior articles here & here )

Outgoing ABA President H. Thomas Wells Jr. was quoted as saying, "the FTC's continued assertion that it can, as it sees fit, regulate lawyers under the 'red flags' provisions is troubling, and unacceptable to the ABA. … It undercuts an unbroken history of strong regulation by state bars and supreme courts, and threatens the independence of the profession from federal controls -- independence that is fundamental to the lawyer's role as client confidante and advocate. And it is goes against Congress' intent when the law was passed."

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