Audiologists Do Not Have to Comply with Red Flags Rule

December 18, 2010. The President has signed into law the "Red Flag Program Clarification Act of 2010 (Bill, S. 3987)," which further clarifies the type of "creditor" that must comply with the Red Flags Rule. According to this Act, now Public Law No 111-319, a creditor includes only entities that use consumer reports, furnish information to consumer reporting agencies or extend credit. A creditor is not someone who advances funds on behalf of a person for expenses incidental to a service provided. The bottom line? Audiologists no longer meet the definition of a creditor under the Red Flags Rule and thus are not legally required to comply with it. Taking steps to reduce the potential for identity theft/medical identity theft in one's audiology practice may be good business, but it is not required by law.