Tex. Business & Commerce Code § 20.0385
This is the official text of Tex. Business & Commerce Code § 20.0385, part of Texas’s Business & Commerce Code — governs commercial transactions and general business practices.
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§ 20.0385. APPLICABILITY OF SECURITY ALERT AND SECURITY FREEZE.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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