How FACTA Protects Consumers

Consumers have many protections in the United States as incidents of fraud are rampant. As an increasing number of consumers rely upon credit and debit cards to make purchases, more sensitive information is released and put at risk of fraud. The government has taken measures to minimize these risks. In 2003, Congress passed the Fair and Accurate Credit Transactions Act (FACTA) as an amendment to the Fair Credit Reporting Act of 1970. This federal law provides several protections in the realm of credit.


The FACTA regulates how consumer credit card information is processed to curb identity fraud and theft. Retailers and banks must comply with a few key provisions to ensure they stay in line when handling your personal data.

Fraud Alerts

Under the Fair and Accurate Credit Transactions Act, consumer reporting agencies must place a fraud alert on a consumer’s file for 90 days at the request of the consumer when fraud is suspected. Other agencies must be alerted about the fraud alert.

Truncating Credit and Debit Card Digits

When you make a purchase with a credit or debit card, you may be accustomed to seeing the last four to five digits of your card number printed on the receipt. This is a standard practice to help you keep track of what card you used but by law, the retailer is only permitted to disclose those last few digits. Per the Act, only up to the last 5 digits of your card can be displayed on a printed receipt. In addition, the expiration date of your card cannot be printed in any way.

Retailers can face hefty penalties for violating this provision, for this provision is reinforced with statutory damages. A consumer who has had his credit card information printed may receive $100 to $1000 per FACTA violation through the counsel of a consumer protection lawyer.

Reporting Possible ID Theft

The FACT Act establishes the Red Flags Rule which requires the National Credit Union Administration and the Federal Trade Commission to create regulations to protect consumers from ID theft. Have you ever noticed how your bank offers some form of identity theft protection? They are required to provide such a service for new and existing accounts.

If you find that your sensitive credit card information has been printed on any receipts, you stand to win up to $1000 in damages per violation of the FACT Act. By consulting with an experienced consumer lawyer handling FACTA violations, you can win a just settlement. Call The Law Offices of Jibrael S. Hindi at 1-844-JIBRAEL or contact us online to get started.