Regarding Service Provider Contracts Answered by BOL Gurus Mary Beth Guard and Jack Holzknecht Bios
In light of the Red Flags requirements, what should we be doing with existing service provider contracts (Internet Banking Service Provider, Debit/Credit card processor, etc.)?
Answer: : If you are to continue using a service provider you must take steps to ensure that the activity of the service provider is conducted in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft. You can address the issue in your contract with the provider. Generally a contract allows either party to make changes by following certain procedures established in the contract.
You will want to get a contractual commitment from the service provider under which it agrees to implement reasonable policies and procedures consistent with the requirements and objectives of the Red Flag rules and guidelines.
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