Set by the law · CJEU C-634/21 SCHUFA Holding, operative part
Credit scoring
In plain English
Calculating a score of how likely someone is to repay. The Court of Justice held that a credit agency's automated score is an automated decision under Article 22 when a lender relies strongly on it.
The official text
the automated establishment, by a credit information agency, of a probability value based on personal data relating to a person and concerning his or her ability to meet payment commitments in the future constitutes ‘automated individual decision-making’ within the meaning of that provision, where a third party, to which that probability value is transmitted, draws strongly on that probability value to establish, implement or terminate a contractual relationship with that person
Related
The official text is quoted word for word from the English version of the source named under it; only the version published in the Official Journal of the EU is legally binding. The plain-English line is Fino’s own summary, not legal advice.