FACTA information: Overview, definition, and example
What is FACTA information?
FACTA information refers to consumer data that falls under the protections and requirements of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). FACTA is a U.S. federal law that amends the Fair Credit Reporting Act (FCRA) to promote accuracy, privacy, and identity theft protection in consumer credit reporting. “FACTA information” typically includes credit reports, consumer data, account numbers, Social Security numbers, and other identifying details regulated by the Act.
Why is FACTA information important?
FACTA information is important because it is subject to strict rules on how it can be used, stored, shared, and disposed of. Businesses that handle this type of information—such as lenders, employers, and service providers—must follow specific procedures to prevent unauthorized access or misuse. Violations can lead to regulatory penalties and civil liability. The law also gives consumers the right to access their credit reports annually and requires redaction or destruction of sensitive data under certain conditions.
Understanding FACTA information through an example
A retailer prints a customer’s receipt after a credit card transaction, showing the full credit card number and expiration date. This violates FACTA, which prohibits printing more than the last five digits of a card number on electronically printed receipts. The full card number is considered FACTA information and must be protected.
Example of how a FACTA information clause may appear in a contract
Here’s how a FACTA information clause may appear in a data security or compliance agreement:
"Each Party agrees to comply with the Fair and Accurate Credit Transactions Act of 2003 and to protect all FACTA Information received, stored, or transmitted in connection with this Agreement, including by implementing appropriate safeguards to prevent identity theft and unauthorized disclosures."
Conclusion
FACTA information refers to sensitive consumer data protected under the Fair and Accurate Credit Transactions Act. Businesses that collect or use this data must implement safeguards to protect consumer privacy and reduce the risk of identity theft. Including FACTA clauses in contracts ensures both compliance and accountability when handling regulated personal information.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.