The Federal Trade Commission has adopted identity theft rules (“rules”) requiring the creation of certain policies relating to the detection, prevention and mitigation of identity theft. The rules adopted as 16 C.F.R. § 681.2, require creditors to adopt “red flag policies” to detect, prevent and mitigate identity theft with respect to covered accounts. The rules include utility companies in the definition of creditor. The Township of Hanover is a creditor by virtue of providing utility services, namely public water and sanitary sewer services, and accepting payment for such services in arrears. Township utility customer accounts for such services are covered accounts as defined by the rules. The purpose of this Part is to comply with the requirements of the rules by establishing red flag policies.
(Ord. 507, 10/20/2010, § 1)