The U.S. House of Representatives has given final congressional approval to a bill designed to exempt lawyers and some other professionals from new regulations to prevent identity theft.
On a voice vote today, the House agreed to a bill that the Senate approved a week ago. The bill amends a 2003 law that directed the Federal Trade Commission to write the new regulations, known as the “Red Flags Rule.” The law applied to “creditors,” a term that FTC officials have interpreted broadly to include professionals who accept delayed payment for services.
“When I think of the word ‘creditor,’ dentists, accounting firms and law firms do not come to mind,” said Rep. John Adler (D-N.J.), speaking on the House floor.
The American Bar Association sued the FTC over the issue, winning in federal district court. The U.S. Court of Appeals for the D.C. Circuit heard the FTC’s appeal last month.
ABA President Stephen Zack applauded the House vote. “At last, the American legal profession has clear and final relief from attempts to solve a non-existent problem that would have created paper-pushing and raised legal costs,” Zack said in a statement.
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