• Plaintiff's Failure to Adequately Plead That Furnisher's Conduct was Willful Resulted in Dismissal of Her FACTA Claim
  • April 21, 2010 | Author: Erik Grohmann
  • Law Firm: Strasburger & Price, LLP - Frisco Office
  • Plaintiff alleged that Defendant SpaClinic, LLC (“SpaClinic”) violated the Fair and Accurate Credit Transactions Act (“FACTA”) by issuing a credit card receipt that displayed her credit card’s expiration date. Plaintiff asserted that SpaClinic’s failure to comply with FACTA was willful, and claimed statutory damages. Plaintiff also sought to represent a class of consumers to whom SpaClinic allegedly issued receipts that violated FACTA. SpaClinic moved to dismiss the amended class action complaint for failure to state a claim, contending that Plaintiff failed to adequately plead that SpaClinic’s conduct was willful. The Court agreed, and dismissed Plaintiff’s complaint without prejudice.

    • FACTA. The Truncation Provision of FACTA states that “no person that accepts credit cards or debit cards for the transaction of business shall print more than the last five digits of the card number or the expiration date upon any receipt provided to the card holder at the point of sale or transaction.” 
    • Failure to State a Claim. The Supreme Court has held that willfulness under the FCRA encompasses both knowing and reckless conduct. Plaintiff must plead factual content that allows the Court to draw the reasonable inference that SpaClinic knowingly or recklessly printed the expiration date on her receipt. In the Court’s view, Plaintiff’s allegations did not permit the inference that SpaClinic’s conduct was anything more than negligent. Plaintiff alleged that FACTA’s requirements were well-publicized and that credit card companies required compliance with the statute, but such allegations were not specific to SpaClinic. Plaintiff’s allegation that SpaClinic willfully disregarded the mandates of FACTA was conclusory, and accordingly, SpaClinic’s motion to dismiss was granted.