Tex.
Bus. & Com. Code Section 20.0385
Applicability of Security Alert and Security Freeze
(a)
The requirement under this chapter to place a security alert or security freeze on a consumer file does not apply to:(1)
a check service or fraud prevention service company that issues consumer reports:(A)
to prevent or investigate fraud; or(B)
for purposes of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payment; or(2)
a deposit account information service company that issues consumer reports related to account closures caused by fraud, substantial overdrafts, automated teller machine abuses, or similar negative information regarding a consumer to an inquiring financial institution for use by the financial institution only in reviewing a consumer request for a deposit account with that institution.(b)
The requirement under this chapter to place a security freeze on a consumer file does not apply to a consumer reporting agency that:(1)
acts only to resell credit information by assembling and merging information contained in a database of another consumer reporting agency or multiple consumer reporting agencies; and(2)
does not maintain a permanent database of credit information from which new consumer reports are produced.(c)
Notwithstanding Section 20.12 (Deceptive Trade Practice), a violation of a requirement under this chapter to place, temporarily lift, or remove a security freeze on a consumer file is not a false, misleading, or deceptive act or practice under Subchapter E (Short Title), Chapter 17 (Deceptive Trade Practices).
Source:
Section 20.0385 — Applicability of Security Alert and Security Freeze, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.20.htm#20.0385 (accessed May 4, 2024).
