Texas Business & Commerce Code

§ 20.0385 — APPLICABILITY OF SECURITY ALERT AND SECURITY FREEZE

BC § 20.0385Title 2. COMPETITION AND TRADE PRACTICES · Ch. 20. REGULATION OF CONSUMER CREDIT REPORTING AGENCIES · Art. B. SECURITY ALERT AND SECURITY FREEZE

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(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:

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