FACTA Credit Card Protections Examined

FACTA credit card protections are in place to help prevent identity theft and credit card fraud, but consumers can still take steps of their own to keep their credit safe.

The FACTA credit card protections available include free annual reports from each of the three national credit agencies, as well as requiring businesses to limit the amount of information on electronically printed credit and debit card receipts.

FACTA, or the Fair and Accurate Credit Transactions Act, was originally passed by Congress in 2003 to help curve the growing problem of identity theft.

Under FACTA, businesses that print electronic receipts are required to omit all but the last five digits of the card number and completely leave off the expiration date. This process is called truncation, and is meant to help prevent thieves and fraudsters from gaining easy access to the consumer’s personal financial information.

Overview of FACTA Credit Card Protections

It is important to note that the FACTA truncation rule applies to all electronically printed receipts including those from kiosks, cash registers, and restaurant tickets. But it does not apply to handwritten receipts or those made from a physical imprint of the card. In these cases, consumers may prefer to use cash to avoid generating a paper receipt with their card information on it.

Along with truncation, there are a number of other FACTA credit card protections provided by the federal government. Consumers can request a free credit report from one of the three national credit agencies Equifax, Experian, and TransUnion, and they set up a fraud alert with their respective financial institutions.

FACTA credit card protections also require businesses to handle consumer credit reports in ways designed to help detect and prevent fraud and identity theft. Businesses are expected to watch out for FACTA red flags including:

• Fraud alert on a consumer’s credit report, placed by consumer
• Unusual behavior or changes in consumer’s credit card activity
• Use of contact information that have been used in previous fraud attempts
• Use of accounts that have been previously inactive
• Use of Social Security number of a deceased person

FACTA credit card protections also require business to dispose of vital consumer information in accordance with FTC guidelines. These guidelines tell businesses how to dispose of electronic or paper documents in ways that prevent third parties from retrieving the information.

The FTC also recommends hiring a third party document disposal service, after conducting due diligence, to insure compliance with federal policy. These information disposal requirements often apply to businesses handling personal information on a regular basis including:

• Consumer Reporting Companies
• Lenders
• Insurers
• Employers
• Landlords
• Government Agencies
• Mortgage Brokers
• Automobile Dealerships
• Attorneys
• Private Investigators
• Debt Collectors
• Individuals who receive credit reports on household employees

Having an in depth understanding of FACTA credit card protections can help consumers better protect themselves against fraud, by understanding how their personal financial information is supposed to be protected.

If consumers notice their credit card receipt shows more than the last five digits of the card number or exposes any part of its expiration date, they may have a FACTA violation on their hands. Businesses found to be in violation of FACTA could face up to $1,000 in statutory damages for each noncompliant receipt.

Consumers who receive noncompliant receipts may be in a position to bring a civil FACTA claim against the business that issued the receipt.

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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