Credit and Debit Card Receipt Lawsuits Filed over FACTA Violations

Consumers across the country have been filing credit and debit card receipt lawsuits against different companies for allegedly violating federal consumer protection laws.

These credit and debit card receipt lawsuits alleges the companies’ transaction receipt software did not meet the standards of the Fair and Accurate Credit Transactions Act and exposed the consumer to increased risk of identity theft and credit card fraud.

FACTA was originally enacted in 2003 to help combat the growing problem of identity theft and credit card fraud. Companies were given until 2006 to update their transaction software to be FACTA compliant, or face potential legal repercussions.

It is important to note that imprinted or written receipts do not have to be FACTA compliant. The requirements apply to electronically-printed receipts that are given to the customer at the point of sale.

Overview of FACTA Importance

Under FACTA, electronically printed credit and debit card receipts must show no more than the last five digits of the card number and must completely omit the card’s expiration date.

Without these two pieces of information, thieves and fraudsters will have a more difficult time in gaining access to the consumer’s personal finances. While there are other ways criminals can steal this information, merchants and businesses are legally obligated to help protect their consumers against this possibility.

The process of limiting the numbers and expiration date of the card is called truncation, which is required in every modern transaction software that prints electronic receipts from cash registers, self service kiosks, and restaurant tickets.

In addition to the credit and debit card regulations, FACTA also guarantees consumers a free annual credit report from Experian, Equifax, and TransUnion to review their financial activity as collected by the credit bureaus.

Furthermore, national efforts have been put forward by the federal government to create a nationwide fraud alert system, which allows consumers to notify authorities that they may be victim of potential credit card fraud.

Regulators also created a list of suspicious behaviors, known as “red flags,” that might indicate fraud or identity theft, including compliance examinations and requiring lenders and credit agencies to monitor the any deviations from the consumer’s spending habits.

According to recent surveys, approximately 80% of United States consumers use debit and credit cards to pay for purchases. This makes FACTA policy adherence vital to consumer privacy protection, and it explains why the penalties for violations can potentially result in debit and credit receipt lawsuits.

When merchants are found to not be FACTA compliant, they could face potential credit and debit card receipt lawsuits from consumers. The businesses could face potential statutory damage awards independent of the actual harm the claimant suffered.

Businesses could face up to $1,000 per faulty receipt, along with any other relevant damages. Consumers have already brought class action credit and debit card receipt lawsuits for alleged FACTA violations, with one survey finding that the damage amounts ranged from $4 billion to almost $40 billion in California class action lawsuits.

Consumers looking to file credit and debit card lawsuits should maintain any relevant receipts and other applicable records indicating the business was in FACTA violation. Potential claimants should contact a lawyer to determine eligibility for filing 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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