2023 Texas Statutes › Business and Commerce Code › Title 11 - Personal Identity Information › Subtitle B - Identity Theft › Chapter 523 - Provisions Relating to Victims of Identity Theft › Subchapter B. Duties of Financial Institutions And › Section 523.052. Notification to Check Verification Entities That Customer Is Victim of Identity Theft

Sec. 523.052.  NOTIFICATION TO CHECK VERIFICATION ENTITIES THAT CUSTOMER IS VICTIM OF IDENTITY THEFT.  (a)  In this section:
(1)  "Check verification entity" means a consumer reporting agency that compiles and maintains, for businesses in this state, files on consumers on a nationwide basis regarding the consumers' check-writing history.
(2)  "Financial institution" means a bank, savings association, savings bank, or credit union maintaining an office, branch, or agency office in this state.
(b)  A financial institution shall submit the information as required by Subsection (c) if a customer notifies the financial institution that the customer was a victim of an offense under Section 32.51, Penal Code, requests that the financial institution close an account that has been compromised by the alleged offense, and presents to the financial institution:
(1)  a copy of a police report of an offense under Section 32.51, Penal Code;
(2)  a sworn statement by the person that the person was the victim of an offense under that section; and
(3)  written authorization to submit the information required by Subsection (d) to the electronic notification system established under Section 11.309, Finance Code, for secure distribution to check verification entities.
(c)  A financial institution that receives the documents required by Subsection (b), not later than the second business day after the date the customer provides the documents to the financial institution, shall submit the information required by Subsection (d) to the electronic notification system established under Section 11.309, Finance Code.
(d)  The information submitted by a financial institution under Subsection (c) must include:
(1)  the customer's name, address, phone number, date of birth, and driver's license number or government-issued identification number;
(2)  the financial institution account number of any account that has been compromised by the alleged offense and has been closed in response to the alleged offense;
(3)  the financial institution routing number; and
(4)  the number on any check that has been lost, stolen, or compromised.
(e)  A check verification entity shall maintain reasonable procedures, in accordance with rules adopted by the finance commission, to prevent the check verification entity from recommending acceptance or approval of a check or similar sight order drawn on an account identified in the notification if:
(1)  the check verification entity receives notification through the electronic notification system; or
(2)  a customer presents to the check verification entity:
(A)  a copy of a police report of an offense under Section 32.51, Penal Code;
(B)  a sworn statement by the person that the person was the victim of an offense under that section and that the person has requested that the financial institution close any account that has been compromised by the alleged offense; and
(C)  the information described by Subsection (d).
(f)  A financial institution or check verification entity, or an officer, director, employee, or agent of the institution or entity, is not liable for damages resulting from providing the notification required by Subsection (c) or failing to recommend acceptance or approval of a check or similar sight order under Subsection (e).
(g)  The Finance Commission of Texas may adopt rules:
(1)  to implement this section;
(2)  to clarify the duties and responsibilities of a customer, financial institution, or check verification entity under this section;  and
(3)  to specify how an erroneous notification may be withdrawn, amended, or corrected.
Added by Acts 2007, 80th Leg., R.S., Ch. 1044 (H.B. 2002), Sec. 1, eff. September 1, 2007.
Transferred from Business and Commerce Code, Section 35.595 by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.011(c), eff. September 2, 2009.