ECJ: SCHUFA score must not be decisive for creditworthiness

The automated creation of a score is only permitted under strict conditions, the Court of Justice rules. According to the ruling, another practice is contrary to the General Data Protection Regulation.

The European Court of Justice has strengthened the rights of consumers who want a loan. According to this, banks and money lenders are prohibited from relying exclusively on the so-called Schufa score when assessing creditworthiness. This value is created in an automated data collection process. This contradicts the European Data Protection Regulation because it has far-reaching consequences for those affected.

The SCHUFA score must not be the only factor when it comes to the question of whether companies conclude contracts with their customers. This was decided by the European Court of Justice today. The background is a case from Germany. [more]

The European Court of Justice has ruled Schufa's so-called scoring as inadmissible. At least when customers of the credit agency - such as banks - decide on loans primarily based on the Schufa value. In this case, it is a prohibited automated decision, the court finds.

The European Court of Justice (ECJ) has declared the so-called Schufa scoring inadmissible. This means that banks, energy suppliers and telecommunications services are no longer allowed to decide on loan applications solely on the basis of Schufa information (Case: C-634/21) .The article Schufa scoring not permitted: Decisions on loans must not be made automatically appeared first on Tichy's Insight.

Wiesbaden/Luxemburg - Welchen Einfluss hat die Schufa auf Kreditentscheidungen? Das Urteil des Europäischen Gerichtshofs zu den Bonitätsbewertungen der Schufa könnte größere Auswirkungen haben.