The Fair and Accurate Credit Transactions Act (FACTA) is a U.S. federal law enacted in 2003 that amended the Fair Credit Reporting Act (FCRA). It introduced a variety of provisions designed to combat identity theft and protect consumer information. One of the key consumer protections required by FACTA is the truncation of credit and debit card numbers on receipts to prevent identity theft.
Details of the Truncation Requirement:
* FACTA Section 113 (15 U.S.C. § 1681c(g)):Retailers are prohibited from printing more than the last five digits of a credit or debit card number on electronically generated receipts. Additionally, the card's expiration date must also be excluded.
* This requirement applies to point-of-sale and other electronically printed receipts and aims to reduce the risk of credit card fraud and identity theft.
Explanation of Options:
* A. The ability to correct inaccurate credit report information:This right is protected under the Fair Credit Reporting Act (FCRA), not FACTA specifically.
* B. The truncation of account numbers on credit card receipts:This is correct, as it is one of the most notable protections introduced by FACTA to prevent identity theft.
* C. The right to request removal from email lists:This right is not provided under FACTA but may be addressed by other laws, such as the CAN-SPAM Act.
* D. The issuing of notice when third-party data is used in an adverse decision:This requirement is a provision of the FCRA, not FACTA.
References from CIPP/US Materials:
* FACTA Section 113 (15 U.S.C. § 1681c(g)): Details the truncation requirements for credit and debit card receipts.
* IAPP CIPP/US Certification Textbook: Highlights FACTA's measures to protect consumer financial information and prevent identity theft.