Fair and Accurate Credit Transactions Act (FACTA) Violations
- September 11, 2026
- Key Provisions of the Fair and Accurate Credit Transactions Act (FACTA)
- Common Types of FACTA Violations
- How FACTA Violations Can Affect Consumers
- How FACTA Class Action Lawsuits Work
- Notable FACTA Violation Class Action Lawsuits
- What Compensation is Available for FACTA Violation Victims?
- Protect Your Consumer Rights Under FACTA
FACTA also established requirements governing payment card receipts, the disposal of consumer report information and identity theft prevention programs. When a person or business violates these requirements, affected consumers may have legal options. However, a violation does not automatically support a class action lawsuit. The available remedies depend on factors such as the type of violation, whether it was negligent or willful, whether anyone suffered actual harm, and whether the legal requirements for standing and class certification are satisfied.
Key Provisions of the Fair and Accurate Credit Transactions Act (FACTA)
FACTA added or directed several important protections within the broader FCRA framework. Its key provisions include rules that:
- Allow consumers to request one free credit report every 12 months from each nationwide credit reporting company.
- Give identity theft victims access to fraud alerts and other protections.
- Allow consumers to dispute inaccurate information and require consumer reporting agencies to investigate qualifying disputes.
- Limit the card information that may appear on electronically printed point-of-sale receipts.
- Require reasonable measures when disposing of consumer reports and information derived from them.
- Require certain financial institutions and creditors to maintain programs for detecting, preventing and mitigating identity theft.
The FCRA provides additional consumer rights, including notice when information in a consumer report leads to an adverse action. Some current protections, such as the federal right to request a free security freeze, were added by later legislation rather than FACTA itself.
Common Types of FACTA Violations
Improper Credit and Debit Card Receipt Information
FACTA regulates electronically printed receipts provided to cardholders at the point of sale or transaction. A person or business that accepts credit or debit cards may not print more than the last five digits of the card number or the card’s expiration date on the receipt.
Businesses must therefore follow applicable card-number truncation requirements when generating customer receipts. This provision does not apply to receipts that are handwritten or created by manually imprinting a card. It also does not establish general receipt requirements for Social Security numbers, card security codes or other personal information.
Failure to Properly Dispose of Consumer Information
Under FACTA, businesses must securely dispose of sensitive information and take “reasonable” measures to protect customers’ information. This includes any paperwork with identifying information. The FACTA disposal rule went into effect in 2005, requiring businesses and individuals to take appropriate measures to dispose of sensitive information derived from consumer reports.
Improper Handling of Consumer Credit Information
Increased Risk of Identity Theft Due to Data Exposure
How FACTA Violations Can Affect Consumers
The effects of a FACTA violation depend on what information was involved, whether it reached an unauthorized person and whether it was misused. Potential consequences may include:
- Increased risk of identity theft: Improperly exposed or discarded financial information may make fraudulent activity more likely, although a technical violation does not necessarily establish that identity theft occurred.
- Loss of privacy: Consumers may lose control over personal information when covered records are improperly accessed, disclosed or discarded.
- Financial and personal consequences: Actual identity theft may lead to unauthorized charges, damaged credit, time spent correcting records and emotional stress.
How FACTA Class Action Lawsuits Work
A class action lawsuit allows a group of plaintiffs with similar claims to sue a common defendant, making it efficient for cases that are too small to pursue individually. The class action lawsuit process involves hiring a lawyer, filing a lawsuit, obtaining class certification, gathering evidence, and either settling or going to trial. Consumers whose rights were violated under FACTA may pursue legal claims against the person or business that violated them.
Who May Qualify for a FACTA Violation Claim?
Individuals who received receipts containing prohibited card information may be impacted. If your paper debit, credit, or EBT card receipt fails to follow FACTA guidelines, you may be eligible to join or start a class action. This may be the case if a receipt has more than the last 5 digits of your card number or any other information about it, such as the expiration date or security code.
Notable FACTA Violation Class Action Lawsuits
Keim v. Trader Joe’s Company – $7.4 Million Settlement
In this case, Brian Keim sued Trader Joe’s in 2019, alleging that receipts issued at some stores displayed the first six and last four digits of customers’ cards in violation of FACTA. Trader Joe’s denied wrongdoing but agreed to a $7.4 million settlement, which a California court approved in August 2026. The settlement was not an admission of liability.
Flaum v. Doctor’s Associates, Inc. (Subway) – $30.9 Million Settlement
Doctor’s Associates, Subway’s franchisor, agreed to a $30.9 million settlement resolving claims that certain restaurants printed card expiration dates on electronic receipts. The settlement covered cardholders holding approximately 2.69 million unique card numbers and received final approval in 2019 without an admission of liability.
Legg v. Laboratory Corporation of America Holdings (Labcorp) – $11 Million Settlement
Labcorp agreed to an $11 million settlement resolving allegations that its patient service centers printed card expiration dates on receipts. The nationwide settlement received final approval in 2016 without an admission of liability.
What Compensation is Available for FACTA Violation Victims?
Protect Your Consumer Rights Under FACTA
FACTA helps protect American consumers’ financial privacy by prohibiting businesses from exposing their credit card information on receipts. If you believe you may have been affected by a FACTA violation, check our class action resources and active news feed to see whether you may have grounds for a lawsuit.
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