ABA threatens to sue over the Red Flags Rule

The ABA has promised to sueif the FTC does not exempt lawyers from the Red Flags Rule. The Red Flags rule is an effort to protect against identity theft. At the heart of the issue is the exceptionally broad definition of creditors, which makes any service provider billing at the end of the month for services performed in the previous month a "creditor," subject to extensive, and expensive regulations. With these regulations, the FTC hopes to identify potential "red flag" internal areas of vulnerability in creditors, and then create policies for detection and prevention of identity theft. The ABA argues that attorneys were never the kind of "creditors" the law sought to regulate. See the article:

http://www.abajournal.com/weekly/aba_to_sue_if_ftc_wont_exempt_lawyers_from_id_theft_rules