Credit scoring and automated decisions

Finally we are seeing some legal movement on automatically calculated credit scores. The CJEU ruled that the practice of full automation to calculate creditworthiness and extend credit does violate Article 22 of the GDPR.

“The CJEU tasked the Administrative Court of Wiesbaden in Germany, where the case originated, with determining whether German federal law contains a GDPR-compatible exception to the prohibition on automated data processing. If the court finds no applicable exceptions, credit scoring agencies in the EU will have to obtain consumers’ express consent before calculating their creditworthiness, and provide consumers with an opportunity to object to a credit score."

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://curia.europa.eu/jcms/upload/docs/application/pdf/2023-12/cp230186en.pdf

https://www.huntonprivacyblog.com/2023/12/14/cjeu-rules-that-gdpr-prohibition-on-automated-decision-making-applies-to-credit-scoring/