FACTA Compliance Promotes Credit Card Fraud Protection

Credit card fraud protection has been on the mind of many American adults with in the last couple of weeks after the news broke regarding the Experian data breach.

When a data breach happens to a company who is supposed to assist consumers with credit card fraud protection, it can lead to a great deal of uncertainty in terms of moving forward while safeguarding your private information.

FACTA Designed to Assist with Credit Card Fraud Protection

Enacted in 2003, the Fair and Accurate Credit Transactions Act, or FACTA, was passed as an amendment to the Fair Credit Reporting Act from several decades earlier.

This legislation was designed to help consumers by improving credit card fraud protection activities to safeguard private consumer information.

The Act has two main parts to assist in credit card fraud protection. The first part, and the more commonly known part, allows Americans to access a free copy of their credit report each year from the top three credit reporting agencies: Equifax, TransUnion and Experian.

Consumers can use these credit reports to make sure they are accurate and to ensure that no fraudulent activity has occurred, and can do so each year for no fee.

Another part of the Act governs what information may appear on credit card and debit card receipts. The amount of information is limited, thus improving credit card fraud protection for consumers.

Under FACTA, the information that appears on the credit card and debit card receipts must be shortened, or truncated. No more than the last five digits of the credit card or debit card account number may appear on an electronically printed receipt that is given to a consumer. Additionally, no part of the credit card or debit card’s expiration date may appear on the credit card.

Prior to this legislation, businesses could print the entire credit card number and expiration date on receipts. If a consumer lost a receipt or tossed it into the garbage can, it was an easy target for identity thieves to gather all the information they needed to use a consumer’s credit card or debit card.

When Businesses Fail to Provide Credit Card Fraud Protection

If a business fails to provide credit card fraud protection to its consumers by neglecting to follow the truncation requirements for electronically printed customer receipts, it can place consumers at risk for credit card fraud. But it can also be very costly to the business.

Under FACTA, violations can lead to hefty penalties for businesses. The Federal Trade Commission can take legal action and consumer lawsuits may also be filed. For willful violations, statutory damages of $100 to $1000 per violation may be awarded to plaintiffs. Plaintiffs may also be eligible to collect attorneys’ fees and additional damages.

On an individual basis, a $100 to $1000 fine may not seem like a lot. But for high volume businesses who issue hundreds or thousands of receipts every hour, that could add up to millions or billions of dollars if a FACTA class action lawsuit is filed against the company.

If you are in possession of a receipt that violates FACTA by failing to provide you credit card fraud protection, you may have a legal claim. An attorney can consult with you about the details of your potential case and can help determine your eligibility to take legal action.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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