Receipts Violating FACTA Could Be Grounds for a Legal Claim

Federal law gives consumers a powerful way to fight back against receipts violating FACTA.

FACTA stands for the Fair and Accurate Credit Transactions Act. This law was enacted in 2003 as a set of amendments to the Fair Credit Reporting Act.

As the technology for handling sensitive consumer credit information became more widespread, Congress grew increasingly concerned about the increasing risk of identity theft and credit fraud.

To combat these new hazards, Congress drafted FACTA with a bundle of different consumer protections. For example, under FACTA, consumers are now legally entitled to one free copy of their credit report per year from each of the three major credit reporting bureaus – Experian, TransUnion and Equifax.

Under FACTA, the Federal Trade Commission established a system known as the Red Flags rule. This system requires financial institutions, creditors, and other entities that handle consumer credit information to be on the lookout for certain “red flags” that may be likely indicators of credit fraud.

Some of these red flags could include unusual account activity, suspicious changes of address or alerts placed on a credit report by a reporting bureau.

What to Do About Receipts Violating FACTA

One of the more powerful consumer protections in FACTA puts enforcement power right in the consumer’s hands. Consumers can fight back regarding receipts violating FACTA.

This particular rule, known as the truncation requirement, governs how much card information a merchant can print on a credit or debit card receipt. By limiting this information, the rule reduces the risk that a stray receipt might expose the consumer to identity theft.

Under FACTA, an electronically-printed receipt that a business gives to a customer at the point of sale may not show more than the last five digits of the card number. The receipt must also not show any part of the card’s expiration date.

As a group, consumers themselves are in the best position to spot receipts violating FACTA. So Congress included a provision in FACTA that allows affected consumers to bring a civil FACTA lawsuit against the business that provides the noncompliant receipt.

What makes a FACTA lawsuit especially powerful are the statutory damages available. Congress recognized that when identity theft happens, it can be difficult for the plaintiff to know exactly what harm they suffered or how much they were damaged in terms of dollar amounts.

So Congress allows plaintiffs in a FACTA lawsuit to claim statutory damages. These provisions apply where the plaintiff can show the receipts violating FACTA were created knowingly or willfully.

For each such noncompliant receipt, the plaintiff may be entitled to anywhere between $100 and $1,000 in statutory damages. The defendant can also be on the hook for punitive damages and the plaintiff’s attorney fees.

Practically speaking, receipts violating FACTA aren’t likely to be a mere one-off occurrence. A merchant who prints one noncompliant receipt may have point of sale equipment set up to print hundreds or even thousands of receipts violating FACTA.

Creating that many FACTA violations against a potential class of consumers could be grounds for a FACTA class action lawsuit.

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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