California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 1.6 — Consumer Credit Reporting Agencies Act, Chapter 2 — Obligations of Consumer Credit Reporting Agencies, Section 1785.11.6
The following entities are not required to place in a credit report either a security alert, pursuant to Section 1785.11.1, or a security freeze, pursuant to Section 1785.11.2:
(a) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments.
(b) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information regarding a consumer, to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution.
Notes
Exempts specified check-services, fraud-prevention, and deposit-account information companies from requirements to place a security alert or security freeze in a consumer credit report. The exemption covers qualifying services issuing reports for payment authorization or fraud purposes and deposit-account reports concerning closures, overdrafts, ATM abuse, or similar negative information used by financial institutions reviewing deposit-account requests.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1785.11.6 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-1-6/chapter-2/section-1785-11-6