The President recently signed “red flags” legislation that makes doctors exempt from the anti-identity theft requirements and safeguards that banks and other creditors must follow. This amendment to the Fair Credit Reporting Act is primarily a definition of the term “creditor.” Confusion over the definition of “creditor” resulted in a Federal Trade Commission position that physician practices and other small professional service businesses would need to comply with the same regulation that calls for banks and creditors to have written procedures in place to prevent, identify and mitigate identity theft and to train staff to follow those plans. With the new legislation and clarification, compliance is no longer necessary.