Two FACTA Lawsuits Result In $11 Million Settlement

Two Fair and Accurate Credit Transaction Act (FACTA) lawsuits came to a head, reaching record settlement deals between the plaintiffs and Laboratory Corporation of America (LabCorp) and Spirit Airlines.

These companies agreed to pay $11 million in FACTA violations, which is largest settlement ever occurring under the federal privacy statute.

These FACTA lawsuits were brought forward by lead plaintiff Christopher L. in his dispute with LabCorp, where Christopher claimed that the company had exposed the expiration dates of his credit and debit card numbers on his receipts.

This is a direct violation of the FACTA Act and Christopher insists that the company was aware of the statute and the importance of following the policy.

FACTA was established in 2003, to help protect consumers against the growing problem of credit card fraud and identity theft. This federal policy dictates that every printed credit or debit card receipts only show the last five digits of the consumer’s cards, and must hide the expiration dates of the card.

FACTA policy applies to all electronically printed receipts printed from cash registers, self-service kiosks, and restaurants. In Christopher’s lawsuit, he alleges that the companies had violated different policies of FACTA but each carried the equivalent risk of exposing him and other consumers to identity theft.

Overview of FACTA Violations

LabCorp agreed to pay nearly $200 to each class member to settle the FACTA charges, which included a nationwide group of plaintiffs dating back to five years and composing of 665,000 consumers. Christopher will receive a $10,000 incentive award, with LabCorp agreeing to update its transaction system to not expose the expiration dates on credit card and debit card receipts.

The legal battle for Christopher was not yet over as he claimed FACTA allegations against Spirit Airlines, stating that the airline revealed too many numbers on his credit card receipts. According to the lawsuit the first seven numbers of his account number were exposed, when FACTA only permits the last five digits of the card to be printed.

A similar FACTA lawsuit was previously filed against the airline in 2010, where the plaintiff had alleged reckless and willful FACTA violations. Pursuant to Christopher’s lawsuit, class members from 2012 who paid using either their debit or credit cards and had their digits exposed will receive $265 each.

Similar to LabCorp, Spirit also updated its payment systems to be in accordance with FACTA compliance. The airline has taken measures by having IBM pre-program its airport kiosks to print no more than the last five digits of consumers’ credit and debit card numbers.

These massive settlements may encourage other companies in America to avoid FACTA violations, by omitting numbers and hiding expiration dates. Additionally it reminds merchants that consumers have the legal right to file a FACTA lawsuit, if the companies are found in either negligent or willful violation of this consumer protection 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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