Credit Agencies Face EU Data Curbs on Rating People’s Credit Worthiness
The EU Court of Justice in Luxembourg.
Photographer: Geert Vanden Wijngaert/BloombergThis article is for subscribers only.
Europe’s top court delivered a blow to Germany’s dominant provider of consumer credit ratings, saying the way it helps businesses decide whether to conclude contracts risks violating European Union privacy rules.
The EU Court of Justice ruled on Thursday that the bloc’s General Data Protection Regulation prohibits banks and other businesses from giving Schufa Holding AG’s rating scores “a determining role” in their credit decisions. The court also said that individuals have data deletion rights.