What Does the Fair and Accurate Credit Transaction Act Provide for Consumers?

What is the Fair and Accurate Credit Transaction Act?

The Fair and Accurate Credit Transaction Act of 2003, or FACTA, is a law amending the Fair Credit Reporting Act. Under the Fair Credit Reporting Act, which was passed in 1970, credit reporting agencies were required to ensure the fairness and accuracy of any consumer personal information they held, and were also required to keep this information private.

As technology changed and adapted over the next several decades, an amendment was needed in order to update the Fair Credit Reporting Act for modern times. FACTA was passed in 2003 to update the Act and add additional protections.

What Does the Fair and Accurate Credit Transaction Act Regulate?

FACTAis mainly known for its role in providing consumers with access to their credit reports, and for aiding in preventing identity theft. Under FACTA, consumers are entitled to receive one free credit report each year from one of the major credit reporting agencies. Additionally, consumers may also purchase their credit score for a reasonable fee.

Consumers are also allowed to place fraud alerts on their credit files if they suspect that their identity has been stolen. Placing a fraud alert on their account may make it more difficult for criminals to use their identity to open lines of credit and commit credit card fraud.

FACTA also requires companies other than credit reporting agencies to ensure the privacy of consumer information. Under the Act, retailers who print credit card receipts must adhere to certain regulations about what information may be included on receipts, and what information is prohibited.

How Does FACTA Affect Receipts?

Under FACTA, only the final five digits of a consumer’s credit or debit card may be printed on a receipt. Instead of showing the entire credit or debit card number, retailers are required to truncate, or hide, most of the digits. Generally, retailers will use a # or * symbol instead of the actual numbers. Additionally, no part of the expiration date may be shown on the receipt. Receipts that include prohibited information may qualify consumers to speak with experienced attorneys about their legal rights.

Ensuring that the receipts you receive are FACTA compliant is important in order to ensure that your identity does not become stolen or compromised. Thieves who steal discarded receipts from the trash may be able to piece together enough information to steal your identity, access your finances, or take out lines of credit in your name if these receipts contain personal information.

Companies that do not comply with FACTA receipt laws may be subject to fines or other penalties. However, there are some exceptions; not every retailer is bound by FACTA. Companies that give consumers handwritten receipts, or receipts that are created by making an imprint of the credit card are not covered under the law. Only electronically printed receipts must be in compliance.

Have any FACTA Lawsuits Been Filed?

Many consumers have filed lawsuits against retailers, claiming that they were given receipts containing their personal information. Six Flags, Godiva, Subway, Jimmy Choo, LabCorp, Microsoft, and Spirit Airlines have all been hit with lawsuits regarding FACTA receipt violations.

If you have been given a receipt containing more than the last five digits of your credit or debit card number, or any part of your expiration date, you may be eligible to speak with an experienced attorney about your legal options.