FACTA Rules and Rights for Consumers

Consumers across America are filing lawsuits over violations of the Fair and Accurate Credit Transactions Act (FACTA) against merchants who allegedly failed to comply with the federal regulation.

According to FACTA rules, merchants must perform truncation on electronically printed debit and credit receipts.

The act of truncation is shortening the numbers of the card on the receipt, by omitting the numbers and replacing them with placeholder symbols. According to FACTA rules, merchants must only show the last five numbers of the debit or credit card on the receipt and omit the card’s expiration date.

It is important to note that FACTA compliance does not apply to handwritten or imprinted receipts, as it is not possible to electronically record the numbers. However FACTA rules do apply to all electronically printed receipts produced by cash registers, self-service kiosks, and restaurant tickets.

At this time, consumers are being encouraged to educate themselves in FACTA rules to understand their rights and to be vigilant against potential identity theft. The numbers and the expiration dates on the credit or debit cards are vital personal identification information, making fraud and identity theft fairly easy to commit.

If more than the last five numbers and the expiration date is exposed, identity thieves or fraudsters could string together the remaining information. It is important to note that credit card fraud or identity theft is devastating for any consumer, as both can ruin credit scores and can be damaging to any income.

As such, it is vital that consumers confirm that merchants are complying with FACTA rules, as it protects the consumers from fraud and the merchants from potential lawsuit. Every consumer has the right to have their information be protected, and should not have to feel at risk when making a purchase.

Overview of FACTA Rules and Litigation

FACTA was established by the federal government in 2003, as an amendment to the Fair Credit Reporting Act.

Under FACTA, consumers can request a free credit report once every twelve months from each of the national consumer credit reporting companies. This act was meant to combat the rising problem of credit card fraud and identity theft, by hiding vital personal information and requiring merchants to securely dispose of consumer information.

Willful or negligent violation of FACTA can result in damages from $100 to $1,000, with the consumer not being required to prove that they suffered actual harm. Currently, there are several major FACTA lawsuits filed against big-name companies like Urban Outfitters, IKEA, Cost Plus, and Toys-R-Us.

There are currently over 100 FACTA class action lawsuits filed in America, from consumers who allegedly had more than the last five numbers exposed on their receipts. Consumers who observed more than the last five digits shown on their credit or debit card receipts may be eligible to file a claim.

If the expiration date is exposed on the receipt as well, consumers may also be eligible for 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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