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, 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, Chapter 17.Tex. Bus. and Comm. Code § 20.0385
Amended By Acts 2007, 80th Leg., R.S., Ch. 1143, Sec. 2, eff. 9/1/2007.Added by Acts 2003, 78th Leg., ch. 1326, Sec. 3, eff. 9/1/2003.