Why Does FACTA Matter? As an employer, what you don’t know about the FACTA Law can definitely hurt you. FACTA, stands for Fair and Accurate Credit Transaction Act. Click on the hyperlink at the beginning of this page to read the full article.
If you are hospital or other medical services provider, you need to answer the
following 2 questions?
- Do you defer payments from patients for medical goods or services?
- Do you allow repayment from patients thru multiple transactions or payments?
If the answer is YES, you MUST comply with the Red Flags Rule!
Why? Because the Rule applies to a "creditor" who defers payment for goods or services from a consumer and offers "covered" accounts:
- Any entity that defers payments for medical goods or services is considered a "creditor" under the Rule.
- A medical repayment plan for a patient to repay medical bills thru multiple payments is a "covered account" under the Rule.
Also, if you offer relocation loans to your doctors or nurses or other employee loans, these are also "covered accounts" under the Rule!
As a "creditor" you fall under the Federal Trade Commission (FTC)'s jurisdiction for purposes of compliance with the Rule.
For more Information regarding a protection plan for you and your family go to:
https://www.prepaidlegal.com/Multisite/Multisite?site=hub&assoc=tkpconsultingllc
June 1, 2010 Deadline Approching
The FTC Deadline to meet the Red Flags Rule is fast approching
If you need Plan put inplace contact me NOW!! I can Help!!
If you are not sure if you need to meet this deadline contact me NOW!! I can Help!!
The greatest benefit that comes to your company is the Education of all Employees. They will thank you over and over again for helping them and offering this education program.
TKP Consulting in cooperation with The Lionheart Assurance Solutions
can help you minimize your risk
We do all the work with minimal inturuption of your business.
SIX STEP PROCESS
Our company provides the following to help your company comply with the Federal Trade Commission requirements.
- We will install a Non-public information (NPI) policy regarding data security (meets the written program requirement)
- Train all employees on ID Theft with New Policy overview (meets appropriate staff training)
- Work with Compliance/Security Officer to oversee program (meets program management requirement)
- Work with HR and Employees with comprehensive Identity Theft Monitoring and Restoration program (meets prevention and migration requirement)
- Oversee vendor and third party provider arrangements (meets oversight of service provider requirement)
- Ongoing program for updates and new employee training.
This six step process helps your company down the road to Certification and Security.
Contact Us Today!! We want to Help You!!!
The Facts on Identity Theft:
- Approximately 7 million people were victims of identity theft in the 12 months prior to July 2003 (Gartner Research and Harris Interactive)
- Every 2 seconds somebody is a victim of Identity Theft.
- Texas is number 2 in the nation as far as this crime goes.
- Nearly 50-72% of identity theft, where the breach was known, occurred at work. (Identity Theft Resource Center)
- Average individual loss as a result of identity theft - $92,893 (USA Today, January 14-16, 2005)
- Amount of time lost per incident to clear related issues - 600 work hours (USA Today, January 14-16, 2005)
- Businesses spent over 50 billion dollars in the last year due to loss of information. (Federal Trade Commission - 2007)
The Facts on FACTA (disposal rule)
- Designed to reduce the risk of consumer fraud and identity theft, applies to every business in America regardless of size
- Requires businesses to follow specific reasonable steps as defined by the Federal Trade Commission. Access to this personal information is strictly limited by other Federal Laws (HIPPA, Gramm, Leach, Blilely etc.)
- States that every person and/or business must protect against unauthorized access to or use of the information in connection with its disposal.
- Allows for civil liability should an employee's identity be stolen due to an employers failure to act
- Consumers may be entitled to recover actual damages sustained as a result of a FACTA violation. (Please refer to the $92,893 in average identity theft losses and 600 work hours lost.)
- Courts are authorized to award punitive damages and attorney's fees, in an individual or class action suit.
- State or federal fines may be imposed on the business or employer per breach of personal information. Those fines are up to but not to exceed $1,000 and $2,500 respectively.
The disposal provision within FACTA is the first law that takes a seemingly direct aim at the company who has the personal information instead of the individual responsible for the resulting fraud.
