Delete SCHUFA entry: A comprehensive guide for those affected

Delete SCHUFA entry: A comprehensive guide for those affected

The SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is the largest credit reporting agency in Germany and plays a central role in assessing the creditworthiness of private individuals and companies. A negative SCHUFA entry can have far-reaching consequences and make it difficult to access credit, rented accommodation, mobile phone contracts and other important services. It is therefore important to understand your rights and to actively challenge incorrect or unjustified entries. This comprehensive guide is designed to help you understand and effectively enforce your rights.

What is SCHUFA and how does it work?

SCHUFA is a private company that collects data on consumers‘ payment behaviour and uses it to create a credit profile. This profile is used by banks, landlords, mobile phone providers and other companies to assess the creditworthiness of their customers. SCHUFA obtains its information from various sources, including banks, credit card companies, mail order companies and collection agencies.

Important: SCHUFA is only allowed to store data if a company can prove that the person in question clearly does not want to or cannot pay.

What is a negative SCHUFA entry and how does it come about?

A negative SCHUFA entry indicates doubts about a person’s ability or willingness to pay. There are different types of negative entries, which have different effects on creditworthiness. The most common causes of negative SCHUFA entries include:

• Unpaid bills: If bills are not paid at all or not paid on time, this can lead to a negative SCHUFA entry.
• Late payments: Even if bills are only paid late, this can have a negative impact on creditworthiness.
• Collection proceedings: The initiation of collection proceedings is a clear indication of payment difficulties and usually leads to a negative SCHUFA entry.
• Judicial dunning procedure: A judicial dunning procedure is a further step that can negatively affect creditworthiness.
• Affidavit: Submitting an affidavit in which financial circumstances must be disclosed indicates insolvency and leads to a negative SCHUFA entry.
• Insolvency: Private insolvency also results in a negative SCHUFA entry that can extend over several years.
• Termination of loans: The cancellation of a loan by the bank is a negative characteristic that is noted in the SCHUFA.

Important: Threats of a negative SCHUFA entry to force payments are not permitted and can have criminal consequences.

What are the consequences of a negative SCHUFA entry?

A negative SCHUFA entry can have a significant impact on various areas of life. Those affected may face the following problems:

• Credit rejection: Banks and other credit institutions use SCHUFA information to assess the creditworthiness of their customers. A negative entry can lead to a loan application being rejected or only granted at unfavourable conditions.
• Problems finding an apartment: Many landlords request a SCHUFA credit report to check the solvency of potential tenants. A negative entry can significantly reduce your chances of renting an apartment.
• Difficulties with mobile phone contracts: Mobile phone providers use SCHUFA to minimise the risk of payment defaults. A negative entry can mean that only prepaid tariffs are available or that a higher deposit is required.
• Restrictions on energy contracts: Energy providers also use SCHUFA to check the creditworthiness of their customers. A negative entry can result in a higher deposit or advance payment being demanded.

When are negative SCHUFA entries automatically deleted?

The deletion of negative SCHUFA entries is regulated by law and occurs automatically after certain periods of time have elapsed. The exact deletion periods depend on the type of entry:

• Paid-off loans: Three years after the loan has been repaid in full.
• Entries from debtor registers: Three years after the entry has been settled, for example, after an affidavit has been submitted.
• Residual debt discharge: Six months after the entry of the residual debt discharge in the insolvency register.

Important: The deletion occurs on the day it is due and not at the end of the calendar year. Until the deletion period has expired, the entry is marked as having been settled.

Is it possible to delete negative SCHUFA entries early?

In some cases, early deletion of negative SCHUFA entries is possible. This applies in particular to:

• Incorrect entries: If a data processing error has occurred, for example, a case of mistaken identity or incorrect assignment of data, the entry must be deleted immediately.
• Enforceable debts: If an enforceable debt, i.e. a debt that has been confirmed by a court, has been paid in full, the entry can be deleted from the SCHUFA once it has been deleted from the district court records.
• Court data: Court data that has led to a negative SCHUFA entry can also be deleted prematurely if the underlying debt has been settled and this has been confirmed by the district court.

Important: The former insignificance limit of €2,000, which allowed for the early deletion of entries for minor debts, has no longer been applied by SCHUFA since 2018.

How do I delete a SCHUFA entry?

To request the deletion of a SCHUFA entry, you should proceed as follows:

1. Obtain SCHUFA self-disclosure: Request a free SCHUFA self-disclosure to check which entries are available. You are entitled to one free disclosure per year.
2. Check data: Carefully review the entries for errors, outdated information and unauthorised entries.
3. Check deletion deadlines: Make sure that the statutory deletion deadlines are being met.
4. Request deletion of incorrect entries: If entries are incorrect or the deletion deadlines have not been met, request deletion directly from SCHUFA.
5. Contact the creditor: If the matter involves supposedly unpaid debts that have already been settled, contact the creditor and ask him to agree to the deletion. At the same time, submit a deletion request to SCHUFA.

Tip: Use the written form to communicate with SCHUFA and the creditor and keep copies of all correspondence.

What to do if deletion is refused

If the deletion of a SCHUFA entry is refused, there are various options for enforcing your rights:

• File an objection: File a written objection to the decision and explain your position in detail.
• Contact a consumer advice centre: Consumer advice centres offer independent advice and support with consumer rights issues. They can help you to enforce your rights against SCHUFA or creditors.
• Seek legal assistance: A specialised attorney can competently represent your interests and initiate the necessary legal steps. He can check whether the requirements for deletion have been met and, if necessary, file a lawsuit.

What rights do I have in dealing with SCHUFA?

In addition to the right to delete unauthorised entries, you have further rights in dealing with SCHUFA:

• Right to information: You have the right to receive information at any time and at no cost about the data stored by SCHUFA.
• Right to correction: If the stored data is incorrect or incomplete, you have the right to have it corrected.
• Right to deletion: If the stored data is inadmissible or no longer required, you have the right to have it deleted.
• Right to object: You can object to the processing of your data if SCHUFA has no legitimate interest in the processing.

Current case law on SCHUFA

Case law on data protection and SCHUFA has developed considerably in recent years. The rulings of the European Court of Justice (ECJ) and the Federal Court of Justice (BGH) are particularly relevant.

Important rulings:

• ECJ ruling of 7 December 2023 (Az. C-634/21): The SCHUFA scoring system is inadmissible if it forms the sole basis for credit decisions.
• ECJ rulings on deletion periods for insolvency data (C-26/22 and C-64/22): Insolvency data must be deleted after six months instead of being stored for up to three years as before.
• Judgment of the Higher Regional Court of Frankfurt (23 U 155/03): Disputing a claim against a bank must not automatically lead to a SCHUFA entry.
• Judgment of the Regional Court of Mönchengladbach (02.09.2024, Ref.: 10 O 158/23): SCHUFA must delete entries about settled claims and correct the score value accordingly.

Claims for damages in the case of unauthorised SCHUFA entries

If you have suffered damage as a result of an unauthorised SCHUFA entry, you may be entitled to compensation. This applies in particular to:

• Material damage: For example, as a result of being refused a loan or losing a rental property.
• Non-material damage: For example, as a result of an adverse effect on creditworthiness and personal rights.

Important rulings:

• Higher Regional Court Hamburg, judgment of 10 January 2024 (Ref. 13 U 70/23): A customer received €4,000 in damages after unauthorised claims were reported to SCHUFA.
• Hamburg District Court, judgment of 19 April 2023: 2,000 euros in damages were awarded because a negative entry was unlawful.
• Mainz District Court, judgment of 12 November 2021 (Ref. 3 O 12/20): 5,000 euros in damages were awarded for unauthorised data transfer to SCHUFA.
• Higher Regional Court of Dresden, judgment of 30 November 2021 (Ref. 4 U 1158/21): Here, too, 5,000 euros in damages were awarded for unauthorised data transfer.

How can I check my SCHUFA information?

You have the right to receive a free SCHUFA self-disclosure once a year. You can request this information online, in writing or by telephone. SCHUFA is obliged to send you the information within a few days.

Tip: Check your SCHUFA information regularly for correctness and completeness. This way, you can identify and correct errors at an early stage.

Conclusion: Know and exercise your rights

The SCHUFA has a great deal of influence on the lives of consumers, but you are not without rights. Recent court rulings and statutory regulations have strengthened the rights of those affected. By regularly reviewing your SCHUFA information and requesting the deletion of unauthorised entries, you can protect your credit rating and avoid negative consequences.

Attorney Dr. Thomas Schulte in Berlin specialises in SCHUFA law and can provide you with expert advice on SCHUFA-related issues. He has many years of experience in representing SCHUFA victims and can effectively protect your interests. Please feel free to contact us for a free initial consultation.

Find out how to delete a negative Schufa entry and what other tricks and tips are necessary to protect your rights.

Notice

On the website of Dr. Thomas Schulte’s law firm, you will find numerous articles in German about SCHUFA entries and their removal. These articles provide comprehensive information and practical examples to help you understand complex issues and break them down into manageable steps.

Sample Articles:

1. „Why is SCHUFA allowed to store my data?“
   This article explains the legal basis for SCHUFA’s data storage and informs readers about their data protection rights.
   Dr. Schulte
2. „Shadows of SCHUFA: Removing the discharge of residual debt from SCHUFA“

This article discusses the challenges and legal options for removing the „discharge of residual debt“ marker from SCHUFA.

Dr. Schulte

„SCHUFA Help – What to do about a negative entry“
This article offers a structured guide for dealing with negative SCHUFA entries and outlines how affected individuals can assert their rights.

You can find these and other articles at:
https://www.dr-schulte.de/rechtsanwalt-schufa-eintrag-loeschen-lassen/

The law firm emphasizes a detail-oriented approach that prioritizes accuracy and comprehensive understanding. The information provided is designed to simplify complex tasks into clear, actionable steps and is complemented by illustrative examples.

Want to remove a SCHUFA entry? Dr. Schulte provides effective help!

SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is Germany’s largest credit agency and plays a crucial role in assessing the creditworthiness of individuals and businesses. But what can you do if a negative SCHUFA entry blocks your financial plans?

Problems with a negative SCHUFA entry?

A negative SCHUFA entry can appear faster than expected – whether due to:

• Unpaid bills (intentionally or unintentionally)
• Disputes with companies
• Incorrectly reported claims

Such entries can have far-reaching consequences, including the rejection of loans, energy contracts, or mobile phone plans. It becomes especially problematic when companies unjustly report entries or use threats to enforce claims.

Your Rights: Incorrect or prematurely reported SCHUFA entries can be challenged and, in some cases, deleted early.

Why a specialized lawyer is important

Experience shows that those affected often struggle to resolve issues without legal support. Lawyers can:

• Identify and challenge incorrect entries
• Request deletion from SCHUFA or reporting companies
• Take legal action against unauthorized entries

Dr. Thomas Schulte, a lawyer based in Berlin, has specialized in representing clients affected by SCHUFA for many years. Through careful processing, we often achieve the deletion of unauthorized entries within 1 to 3 weeks.

SCHUFA Scoring and Your Rights

SCHUFA scoring is based not only on negative entries but also on so-called „soft“ criteria, such as:

• The number of credit cards
• Checking accounts with overdraft facilities
• Existing mobile phone or electricity contracts

According to SCHUFA, over 500,000 credit reports are issued daily, although not all of them are always correct. The General Data Protection Regulation (GDPR) grants you rights to defend against unauthorized entries or incorrect data. Take advantage of these opportunities!

Contact Dr. Schulte for prompt assistance

Don’t let SCHUFA entries hinder your future! Contact us for professional advice:

Phone: +49 (0) 30 – 22 19 220 20
Email: dr.schulte@dr-schulte.de

Address: Malteserstraße 170, 12277 Berlin

Nationwide Representation: Whether in Hamburg, Munich, Frankfurt, or any other city – we will handle your case.

Your Benefits with Us:

• Fast Processing: Deletions often within 1-3 weeks
• Digital Communication: Simple and efficient
• Legal Expertise: Nationwide representation and years of experience

Call or email us – we look forward to helping you!

Further Information:

• SCHUFA Scoring and Data Protection: Understanding Your Rights
• Challenging Incorrect SCHUFA Entries – How It Works
• Compensation for Unauthorized SCHUFA Entries

Dr. Thomas Schulte – Your contact for legal issues related to SCHUFA!