FACTA Privacy Protections Afforded by Federal Law

A federal act passed in 2003 aimed to protect the privacy of consumers as an amendment to the Fair Credit Reporting Act.

Known more commonly as FACTA, or the FACT Act, the legislation is called the Fair and Accurate Credit Transaction Act.

The FACTA privacy protections included in this act were to provide security of consumers’ personal information in an effort to protect them against identity theft.

Two main areas of FACTA privacy protections include yearly credit reports and rules for credit card receipts.

Under FACTA, consumers are allowed to receive a free credit report from each of the three big nationwide credit reporting agencies.

Consumers can access their reports from Equifax, Experian and TransUnion through the www.annualcreditreport.com website and can monitor their reports for accuracy.

Additionally, FACTA aims to protect the credit card and debit card information of consumers by its requirements surrounding receipts issued at point-of-sale by businesses.

FACTA Receipt Rules

In order for businesses to be compliant with the rules set forth by FACTA, they must truncate, or shorten, the credit card and debit card information that appears on receipts that are provided directly to consumers.

Before these rules were in place, it was common for businesses to print the entire credit card or debit card number along with the expiration date on the receipt.

When identity thieves got their hands on such a receipt, using the information for unlawful purposes was all too easy.

FACTA requires that businesses print no more than the last five digits of the consumer’s credit card or debit card account number on receipts provided to the consumer.

In addition, no part of the expiration date of the credit card or debit card may appear on a consumer-issued receipt.

Violations of FACTA Privacy Protections

If businesses are found to have violated FACTA by providing noncompliant receipts, the penalties assessed on the business can quickly add up.

For willful violations of FACTA privacy protections, statutory damages ranging between $100 and $1000 per violation may be awarded. For consumers filing FACTA lawsuits, additional damages may be sought.

For a large business that provides hundreds or thousands of daily transactions, the penalties for violating FACTA provisions can cost them upwards of several million dollars.

Legal Action over Violations of FACTA

Businesses large and small have been the target of individual and class action lawsuits for violations o of FACTA protections.

LabCorp was the target of one such FACTA class action lawsuit. The laboratory company agreed to pay approximately $200 in a settlement to each class member that was estimated at approximately 650,000 members.

Spirit Airlines was the target of another FACTA class action lawsuit. The airline settled the claim and agreed to pay each member about $265 as part of the settlement.

Costco has also been the target of a FACTA class-action lawsuit for providing receipts that violated FACTA privacy protections.

A proposed settlement was reached with Godiva where the chocolatier agreed to pay $6.3 million in this settlement to resolve allegations of FACTA violations.

Filing a FACTA Class Action Lawsuit

If you have received a receipt from a business that lists more than the last five digits of your credit card or debit card number or if the receipt lists the credit card or debit card’s expiration date, you may be able to take legal action.

An experienced FACTA attorney can review your case at no charge and can help you determine your eligibility for filing 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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