The regulation was issued to combat identity theft, a growing concern to consumers. The Federal regulation imposes new responsibilities on businesses to prevent consumer identity theft. The impact is broad and the rule affects every single bank, credit union, mortgage lender, auto dealer, credit card lender, payday lender, landlord, utility company, phone company, and any consumer or small business lender in the country.

By the compliance deadline, which is Nov. 1, 2008, each affected entity must perform a risk assessment, and take numerous steps to develop and implement an appropriate written Identity Theft Prevention Program. Failure to comply can lead to civil money penalty for each violation, regulatory enforcement action, private plaintiff lawsuits, negative publicity and loss of business.

CompliancePal walks the user through a series of questions and produces: the required risk assessment, the mapping of red flags to appropriate detection and response procedures, the written program, the training materials and the compliance status report, everything necessary to pass an audit. CompliancePal is also updated regularly for new identity theft schemes and red flags. To use the solution, companies affected by the new regulation sign up online and access the software via the Internet.

"A financial institution or creditor can use CompliancePal's unique five-step system to get into and stay in compliance," said Sai Huda, chairman and CEO, Compliance Coach.

A demo can be viewed at http://www.compliancepal.com.