ECJ on data processing practices of credit agencies
Financial service providers depend on creditworthiness assessments for products such as loans and BNPL, often relying on scores from agencies like SCHUFA. The ECJ rulings of 7 December 2023 (C-634/21; C-26/22; C-64/22) put both the business models of credit agencies and their customers’ products under pressure. This article outlines the decisions and highlights the data protection challenges for agencies when calculating scores and for customers when using them.