European Court of Justice Rules for Greater Transparency in Credit Scoring

The court mandates that consumers must be informed about how their credit scores are determined, strengthening their rights under data protection laws.

The European Court of Justice (ECJ) ruled that credit scoring agencies must provide clear explanations of how they calculate scores.
Consumers have the right to understand which personal data is used and how it influences automated decisions, according to the judgment.
The case originated from a dispute in Austria where a mobile provider denied a contract due to insufficient creditworthiness.
Consumer advocates hailed the decision as a milestone for transparency but warned about ongoing risks of structural bias in scoring systems.
The Schufa, Germany's leading credit agency, welcomed the ruling and stated it already complies with the outlined requirements.