Keeping an Eye Out for FACTA Act Violations

Simple credit card knowledge, like knowing when a merchant has violated a law meant to protect consumer credit information, can help you to keep your personal information and identity safe, and may even lead to financial compensation.

The Fair and Accurate Credit Transactions Act (FACTA) dictates the amount of information that can be shown on credit card receipts. FACTA rules are intended to protect consumers and their account information from potential fraud and identity theft.

Recognizing FACTA Act violations and preventing these kinds of transgressions will not only keep you and your information safe, but may also save thousands of other customers from the same kinds of violations.

FACTA Act Violations and Rules

Passed in 2003, the Fair and Accurate Credit Transactions Act has been fully implemented since 2006.

The most essential part of the FACTA Act is credit card receipt truncation. Truncation, or the shortening of a consumer’s credit card receipt information, must be done in a highly specific way in order to follow FACTA Act rules.

Under FACTA rules, credit card receipts are allowed to display only a small portion of the credit card number. Only the last five digits of a credit card number may be shown. No more than five digits are allowed, and digits cannot be revealed from elsewhere in the number.

In addition, no part of the card’s expiration date may be displayed.

Because credit card receipts are printed electronically, by machine – hand-written receipts are exempt from these FACTA rules – businesses need only make sure that their machines are up-to-date and set to comply with FACTA Act regulations.

FACTA Act Credit Card Lawsuits

Consumers who have proof that a business did not comply with FACTA rules are allowed to file FACTA credit card lawsuits against the businesses who committed the violation, collecting damages as well as attorney’s fees.

The FACTA credit card receipt truncation requirement has led to substantial FACTA class action litigation, as well as significant awards for victims of violations.

This wave of litigation may have something to do with the penalties involved in FACTA violations. The FACTA Act awards statutory damages of up to $1,000 per violation – whether or not the consumer actually suffered any real injury, such as identity theft.

Because FACTA Act violations are tied to electronically printed receipts, FACTA violations are committed via an improperly programmed machine which can print thousands of these receipts. Therefore, catching a FACTA violation committed against you likely means that the same violation has showed up on hundreds, if not thousands, of other customers’ receipts.

In a class action suit where these violations are uncovered, a business may be required to award plaintiffs statutory damages totaling in the millions of dollars. Given that each violation can result in a substantial fine, class action lawsuits can result in damaging or even crippling consequences for businesses.

It is simple enough to prove a company has not complied in FACTA cases, because proof of the FACTA violation is found printed clearly on the bottom of receipts.

Check your receipts regularly to make sure you have not fallen victim to a FACTA violation. If you have, you may consider contacting an attorney who can evaluate your case and walk you through the process of filing a FACTA credit card 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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