Red Flag Rules and Current Privacy Legislation
What is the Red Flags Rule?
The new ‘Red Flags’ rule will help fight identity theft. What is the definition of an identity thief? The answer is someone who uses people’s identity information to open new accounts and misuse existing accounts, creating havoc for consumers and businesses.
The Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration (NCUA) have issued regulations (the Red Flags Rule) requiring financial institutions and creditors to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions Act (FACTA) of 2003.
By May 1, 2009, companies must provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.
Who must comply?
- Financial Institutions: State or national bank, a state or federal savings & loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a customer.
- Creditors: Any entity that regularly extends, renews, or continues credit, any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit.
- Under the Red Flags Rule, financial institutions and creditors must develop a written program that identifies and detects the relevant warning signs of identity theft. The program must also describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program.
- The Red Flags Rule provides all financial institutions and creditors the opportunity to design and implement a program that is appropriate to their size and complexity, as well as the nature of their operations.
- As federal and state legislation tightens and affects not only financial and credit businesses across America, it is imperative that all organizations conduct due diligence and take appropriate measures to ensure end-of-lifecycle documentation is properly destroyed and recycled.
Source: Federal Trade Commission
A partner in compliance.
According to the law, when using an outsourced document destruction company, financial organizations must use due diligence in selecting, managing and monitoring the service provider to ensure consumers’ private information is protected. PROSHRED®’s INFORMATION DESTRUCTION AT YOUR DOOR provides one of the most secure, convenient, economical and environmentally conscious solutions for complying with the current Red Flags Rule.
What Are People Saying About PROSHRED®
I have known and worked with Nguyen Violette for many years. He is dedicated to offering the best possible customer service! I can not recommend... read moreI have known and worked with Nguyen Violette for many years. He is dedicated to offering the best possible customer service! I can not recommend them highly enough! read less
Jennifer11/16/2017In 2014 I researched each shredding company in the area, for the business I was summer interning for! Proshred was the nicest and most bang... read moreIn 2014 I researched each shredding company in the area, for the business I was summer interning for! Proshred was the nicest and most bang for our buck! In 2015, I was hired full time and it was time for another shredding service! We had such a great experience with them in the past, we decided to use Proshred again! They are great people and run a great company! read less
Meghan12/23/2015Proshred is a fantastic company to work with. They’re reliable, efficient, affordable, and so personable. We were so happy with them and I would like... read moreProshred is a fantastic company to work with. They’re reliable, efficient, affordable, and so personable. We were so happy with them and I would like to recommend their services. Thank you Proshred! read less
Patty4/21/2018I called ProShred to get rid of some documents after my mother died. The level of professionalism and compassion that was shown to me... read moreI called ProShred to get rid of some documents after my mother died. The level of professionalism and compassion that was shown to me and my family, from the first phone call to the completion of the job, is something that is rarely seen in corporations these days. I pray that ProShred has continued success and which ever charity receives their services, know that you are going to get quality work. read less
TashaJuanna11/25/2015-
My husband, Stephen, took a huge bag. They're great! Fast...reasonably priced. Will definitely use them again.
Nancy8/03/2019 Dropped off four boxes for shredding. Prompt, friendly service at a very reasonable price.
David3/02/2018-
I've been a client of ProShred and Jim Klemes for quite a while. I wouldn't consider using anyone else. The employees are courteous, friendly, and... read moreI've been a client of ProShred and Jim Klemes for quite a while. I wouldn't consider using anyone else. The employees are courteous, friendly, and very professional. read less
David10/02/2019 They are awesome!!!! They do a great, professional job and provide excellent customer service. I highly reccomend them!
Brian4/16/2015PROSHRED is perfect for our small business. Excellent service. Very affordable. Friendly Staff. We highly recommend them.
Wendy10/30/2017We feel very safe in using ProShred to destroy private business documents. This comfort level comes with seeing same employee come each month to... read moreWe feel very safe in using ProShred to destroy private business documents. This comfort level comes with seeing same employee come each month to service our account since signing on years ago. He is always courteous, knowledgable, professional and happy! Tracy Curran, President J. J. Curran & Son, Inc. read less
Tracy4/27/2017I cannot provide enough positive feedback regarding ProShred Arizona. Patty, Joe, and the entire Proshred Arizona team consistently exceeding expectations. Proshred Arizona also... read moreI cannot provide enough positive feedback regarding ProShred Arizona. Patty, Joe, and the entire Proshred Arizona team consistently exceeding expectations. Proshred Arizona also regularly supports community causes. I highly recommend working with Proshred Arizona for all of your document destruction and shredding needs. read less
Jason2/04/2014First class service all the way around! We are a new customer and have been impressed with pricing and service!
Sondra11/06/2017Yeah! Bravo! Great!excellent company; excellent work; excellent employer!
Robin1/03/2015Excellent service at great rates! Would definitely use this company again.
Penni1/09/2015ProShred was really helpful in instruction on how they quote. They were very prompt and reasonable pricing. The person who done our work... read moreProShred was really helpful in instruction on how they quote. They were very prompt and reasonable pricing. The person who done our work order was quick, and very efficient. I would highly recommend them. read less
Diane11/01/2016
