[Congressional Record Volume 155, Number 159 (Thursday, October 29, 2009)]
[Extensions of Remarks]
[Page E2670]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     H.R. 3763, TO AMEND THE FAIR AND ACCURATE CREDIT REPORTING ACT

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                         HON. DANIEL B. MAFFEI

                              of new york

                    in the house of representatives

                       Thursday, October 29, 2009

  Mr. MAFFEI. Madam Speaker, I come before you today in unison with my 
colleagues from both sides of the aisle in support of H.R. 3763, to 
amend the Fair and Accurate Credit Reporting Act to provide an 
exclusion from Red Flag Guidelines for certain businesses. I'm proud 
that the lawmakers and the FTC are actively combating the serious 
problem of identity theft. The Red Flag Guidelines outlined in the Fair 
and Accurate Credit Reporting Act directs businesses to establish, by 
August 1, 2009, a plan for protecting their customers from identity 
theft. We must remember, however, that regulations like the Red Flags 
Rule have serious consequences for our nation's small businesses. Small 
businesses are leaders in their communities and work hard to establish 
personal relationships with their customers. We cannot simply adopt a 
one-size-fits-all system that applies the same regulatory standards to 
a large corporation as it does to a small community health care 
provider or a small law firm.
   I commend my colleague from New Jersey for recognizing the undue 
burden these regulations will have on small businesses and for 
introducing legislation that provides a more viable solution to 
identity theft prevention. I am proud to have worked with him in 
drafting this bill. H.R. 3763 returns to the original intent of the FTC 
regulations. This bill recognizes that law firms, health care 
providers, accountants, and other businesses which provide repeated 
face-to-face service and/or have fewer than 20 employees are not 
vulnerable to identity theft in the same way as other businesses. These 
types of businesses were not intended to fall under such FTC 
regulations and should not be included in Red Flag Guidelines. H.R. 
3763 would provide an exemption for such businesses, saving the small 
business community tremendous undue financial and administrative 
burden.

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