Sec. 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 . Assigned by Acts 2013, 83rd Leg., R.S., Ch. 64 (S.B. 60 ), Sec. 3, eff. January 1, 2014.
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