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IBA: Lawyers Exempted from Red Flags Rule

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Following aggressive advocacy by organized bar associations around the country, the end is in sight regarding how the Federal Trade Commission should apply the “Red Flags Rule.”  The U.S. Senate voted last week to clarify the rule so that lawyers are clearly not included.

At issue was whether lawyers would be considered “creditors” under the so-called FTC’s Red Flags Rule, and would thus be required to develop programs identifying, detecting, and responding to the warning signs (“red flags”) of identity theft.

On Aug. 27, 2009, the American Bar Association filed suit against the FTC in the U.S. District Court for the District of Columbia. On Oct. 29, 2009, the ABA’s motion for summary judgment for declaratory and injunctive relief from the Rule’s application to lawyers was granted. On Dec. 1, 2009, Judge Reggie Walton issued his full opinion in support of the ABA’s motion, the principal arguments of which are supported by the state and local bar amici.

The amicus curiae brief stated that adhering to the Rule, if it had gone into effect as applicable to lawyers, would have been particularly detrimental to small firms and solo practitioners, “The burden to create such a plan will fall disproportionately upon small law firms and solo practitioner lawyers in this country who represent the great majority of clients and whose time and resources are already spent serving the needs of their clients.”

The state and local bars also emphasized the historical regulation at the state level of lawyer conduct and the “sacrosanct confidentiality of client financial information.”

At press time action by the U.S. House of Representatives was pending.•

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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