FACTA Lawsuits Intended to Protect Consumers from ID Theft

While consumers are encouraged to be discreet with credit card and debit card receipts, there are provisions under federal law to protect consumers from identity theft by omitting certain information from credit or debit card receipts.

The Fair and Accurate Credit Transactions Act (FACTA), is a federal law that requires all merchants to omit all but the last five digits on credit or debit card receipts, and leave out the expiration date.

It was enacted in 2003 to help stop the risk of identity theft, which is often conducted through collecting the credit or debit card numbers. Also called truncation, the numbers are often masked or blocked out on the receipt.

FACTA policy specifically states that no merchant that accepts credit or debit cards for business transactions shall show more than the last five digits of the card number or the expiration date.

FACTA rules apply to all electronically printed receipts that are printed by cash registers, self-service kiosks, and restaurant receipts. The rules apply regardless of how large or small the purchase amount is.

The reason for this law is because the card numbers and expiration dates are some of the easiest pieces of information fraudsters use to commit identity theft, or sell the consumer’s personal information.

Furthermore, experts state that businesses should take preventative measures against FACTA violations by examining whether their own systems are adhering to FACTA policy. Doing this will not only protect consumers against identity theft, but will also protect the merchants from any potential liability against potential identity theft or fraud damages.

Any merchant found to be in violation of FACTA can face potential legal action, and may have to pay up to $1,000 per violation. Consumers have the right to file a FACTA lawsuit, if a merchant is believed to be in violation of this law.

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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