A. Pursuant to federal law, the federal trade commission adopted identity theft rules requiring the creation of certain policies relating to the use of consumer reports, address discrepancy and the detection, prevention and mitigation of identity theft.
B. The federal trade commission regulations adopted as 16 CFR section 681.2, require creditors, as defined by 15 USC section 1681a(r)(5), to adopt red flag policies to prevent and mitigate identity theft with respect to covered accounts.
C. 15 USC section 1681a(r)(5) cites 15 USC section 1691a, which defines a creditor as a person that extends, renews or continues credit, and defines "credit", in part, as the right to purchase property or services and defer payment therefor.
D. The federal trade commission regulations include utility companies in the definition of creditor.
E. The city is a creditor with respect to 16 CFR section 681.2 by virtue of providing utility services, or by otherwise accepting payment for municipal services in arrears.
F. The federal trade commission regulations define "covered account", in part, as an account that a creditor provides for personal, family or household purposes that is designed to allow multiple payments or transactions and specifies that a utility account is a covered account.
G. The federal trade commission regulations require each creditor to adopt an identity theft prevention program which will use red flags to detect, prevent and mitigate identity theft related to information used in covered accounts.
H. The city provides water, sewer and refuse collection services for which payment is made after the product is consumed or the service has otherwise been provided which, by virtue of being utility accounts, are covered accounts.
I. Customer accounts for municipal court fines for which payment is made after the fine is imposed are covered accounts by virtue of allowing for multiple payments or transactions.
J. The federal trade commission regulations, adopted as 16 CFR section 681.1, require users of consumer credit reports to develop policies and procedures relating to address discrepancies between information provided by a consumer and information provided by a consumer credit company. (Ord. 387, 5-10-2011)