Which law outlines the Red Flag Rules for protecting consumer information?

The Fair and Accurate Transactions Act (FACTA) is the law that outlines the Red Flags Rule, which is designed to protect consumer information. This regulation requires financial institutions and creditors to implement safeguards to identify, detect, and respond to patterns, practices, or specific activities that indicate possible identity theft. The Red Flags Rule specifically mandates that businesses develop policies that include red flags, or warning signs of identity theft, and take steps to mitigate any potential harm to the consumers.

In contrast, the Gramm-Leach-Bliley Act primarily facilitates the sharing of consumer financial information and mandates the protection of that information but does not specifically set forth the Red Flags Rules. The Home Mortgage Disclosure Act focuses on the disclosure of mortgage lending data to ensure economies are served fairly, while the Truth in Lending Act is centered around educating consumers regarding loan terms and costs, ensuring transparency in lending practices. None of these address the identity theft prevention measures found in the Red Flags Rule as directly as the Fair and Accurate Transactions Act does.