Contradicts EU rules
Data protection officers take action against Schufa over payment obligation
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Almost every adult has had to provide a Schufa credit report. Data protection advocates are annoyed by the credit agency's business practices. They point out that their services are subject to a fee, although they should also provide them free of charge. This has real disadvantages when looking for an apartment.
The European data protection organisation Noyb has taken legal action against the credit agency Schufa. In a complaint to the Hessian data protection officer responsible for Schufa, the association, which is backed by activist Max Schrems, alleges that the company is withholding certain data from consumers when they provide their credit report free of charge, contrary to the provisions of the European General Data Protection Regulation (GDPR). This data is only made available via a paid “credit report” for just under 30 euros, although consumers are actually legally entitled to a full, free copy.
In the GDPR self-disclosure referred to as a “data copy”, Schufa provides a “basic score” upon request. In the paid “credit report”, however, a total of six “industry scores” are shown. Noyb explained that Schufa does not provide a complete data copy as required in Article 15 of the regulation.
The data protection activists are also annoyed that Schufa takes significantly more time to issue the GDPR self-disclosure than the “credit report”. In test orders, the paid “credit report” was in the mailbox after five days. The free self-disclosure, on the other hand, only arrived a week later.
Disadvantages of finding accommodation
According to Noyb, the main victims of the business practices are those looking for housing. Schufa makes the free self-disclosure difficult to find even in search engines such as Google and instead advertises its paid product with the promise of an “advantage on the housing market”. A transparent reference to the free information in accordance with Article 15 of the GDPR is sought in vain.
The German Tenants' Association pointed out that many prospective tenants, particularly in large and popular cities, are practically forced to provide comprehensive information about themselves. “In order to check the tenant's creditworthiness, landlords often require the submission of a Schufa report, a self-disclosure and a certificate of freedom from rent arrears,” said a spokeswoman. Even if the landlord is not entitled to this, tenants often have no choice but to submit the documents.
The tenants' association did not want to comment on Noyb's specific accusations against Schufa. However, it pointed out that landlords are not allowed to demand unlimited information. “The tenant is only obliged to answer truthfully to questions that are directly related to the rental agreement.” If the potential landlord asks about net income, employment status or the number of household members, the tenant should answer the questions truthfully. Personal questions, for example about religion, an existing illness, preferences and hobbies, party membership or pregnancy, do not have to be answered truthfully. A statement from Schufa was not initially available.
