When the definition of creditor raised a red flag, the U.S. Senate answered with the Red Flag Program Clarification Act of 2010.

The Ohio State Medical Association, the American Medical Association and other physician groups had argued that physicians didn’t meet the intended definition of a creditor, and therefore should not be subject to the Red Flag Rule.

What does it mean?
The Red Flag Program Clarification Act of 2010 exempts doctors’ offices as being considered creditors that must follow the rule.

What does the rule state?

It says that small businesses shouldn’t be classified as creditors because they don’t provide or manage accounts that pose identity theft risks.

What now?
President Barak Obama is expected to sign the legislation into law. It had passed the Senate in November.