How do I delete a negative Schufa entry?
Deleting a negative Schufa entry is crucial to improving one’s creditworthiness and protecting one’s financial reputation. Here are the steps you can take to successfully remove unfavourable information:
1. Obtain a Schufa statement
According to Article 15 of the GDPR, you have the right to receive a self-disclosure from Schufa once a year free of charge. This can be requested via the website www.meineschufa.de/datenkopie.
2. Check your Schufa entry
Analyse your Schufa report carefully, paying particular attention to negative entries. Make sure the information is accurate. If you see incorrect or outdated data, take steps to have it deleted.
3. Pay outstanding debts
A negative entry can only be deleted if the outstanding debt has been paid. Schufa removes such entries when there are no more outstanding claims.
4. Request deletion
Contact the company that reported the negative entry and request its deletion. Include proof of payment with your request.
5. Monitor your credit score
After taking these steps, you should recheck your credit score. Companies and the Schufa itself are required to correct or remove incorrect information after it has been reported.
6. Get a good Schufa rating
To improve your financial reputation, avoid falling behind on payments and remain loyal to one bank or financial institution. Making regular instalment payments for larger loans instead of several small loans will also have a positive effect on your rating.
7. Avoid future problems
Manage your finances so that you avoid falling behind on payments. Even a single late payment can cause a negative Schufa entry.
By following these steps, you can efficiently manage your Schufa data and improve your creditworthiness.
8. Deletion of an application in case of problems
There are various reasons for the deletion of an entry:
Unauthorised entries: If an entry is demonstrably incorrect or unauthorised, you have the right to immediate deletion.
Small claims that have been settled: Small claims of up to €2,000 that have been paid in full within six weeks can be deleted earlier.
Goodwill settlement: In some cases, creditors can have entries deleted on a goodwill basis, for example if the claim was settled within 100 days and at least 18 months have passed since the settlement.
Entries after discharge of residual debt: Since April 2023, the discharge of residual debt has only been stored in the Schufa for six months.
Special situation: According to Art. 21 GDPR, you can object to the processing of your data if a special situation exists.
It is important to know that Schufa does not always bear the burden of proving the lawfulness of the data processing. You can also request a deletion if an entry does not meet the legal requirements. The requirements for a legitimate entry are that the claim is due and undisputed, that the person concerned has been sent at least two written reminders, and that the transmission of the data is necessary to protect legitimate interests. If no instalment payment or deferral has been agreed, this can also result in a negative entry.
A negative Schufa entry can have far-reaching consequences, such as being refused credit, having difficulties finding accommodation or problems concluding mobile phone contracts. It is therefore important to actively address the issue and assert your rights.
A double entry under different names is not permitted and can significantly reduce your creditworthiness.
If you are unsure or need help, it is advisable to seek legal assistance from a specialised lawyer who is experienced in Schufa law.
In addition to deleting the entry, the Schufa score must be corrected. Outdated or incorrect data must no longer be included in the calculation so as not to continue to disadvantage the person concerned.
If you have suffered damage as a result of an unlawful Schufa entry, you can claim damages in accordance with Art. 82 GDPR. This can be both material and immaterial damage.
In summary, it is important to know your rights and take action to delete an unlawful Schufa entry and protect your financial future.
9. Special situation for deleting a Schufa entry according to Art. 21 GDPR
According to Article 21 of the General Data Protection Regulation (GDPR), you have the right to object to the processing of your personal data for reasons arising from your particular situation. This also applies in the context of Schufa entries. A ‘particular situation’ exists if your individual circumstances are characterised by specific circumstances and the processing of your data is associated with particular disadvantages for you. You must explain these disadvantages in concrete terms and provide plausible reasons.
Examples of particular situations may include:
- Discrimination: If you fear that the data processing will lead to discrimination, for example, when looking for an apartment or a job.
- Identity theft: If you have been the victim of identity theft.
- Surveillance: If you feel that you are being excessively monitored as a result of the data processing.
- Religious or political beliefs: If the data processing conflicts with your deeply held beliefs.
- Health reasons: If the processing of your health data leads to discrimination or endangers your health.
- Adverse effect on professional situation: If a Schufa entry endangers your professional existence.
If you exercise your right of objection, Schufa is obliged to stop processing your data. Schufa may only continue processing if it can demonstrate compelling legitimate grounds that outweigh your interests, rights and freedoms in the specific case. In individual cases, it is assumed that your concerns outweigh those of Schufa in case of doubt.
It is important to specifically and in detail describe your particular situation and to include supporting documents. You should explain how the data processing negatively affects your personal situation. If Schufa does not grant your objection, you can file a complaint with the relevant data protection supervisory authority or take legal action.
In the case of an unlawful entry that affects your creditworthiness and impacts your professional situation, a claim for damages can be asserted in accordance with Art. 82 GDPR.
In summary, Article 21 GDPR offers you a powerful instrument to take action against the processing of your data if your particular situation is significantly affected by that processing. You should know your rights and actively use them if necessary.
10. When can I claim compensation for a wrong Schufa entry?
Compensation for a wrong Schufa entry can be claimed under Art. 82 GDPR if unlawful processing of personal data has caused damage. This claim can include both material and non-material damage.
Material damage is financial loss that can be directly attributed to the incorrect entry. These include, for example:
- Refused loans.
- Higher interest rates due to a bad score.
- Worse contract conditions.
Non-material damages are intangible damages such as:
- Stress.
- Insecurity.
- Stigmatisation.
- Damage to reputation.
- Impairment of quality of life.
- Loss of control over one’s own data.
- Feelings such as annoyance or frustration.
- Restriction of financial freedom of action.
Some courts have ruled that even the loss of control over one’s own data can justify non-pecuniary damage. In 2024, the German Federal Court of Justice (BGH) ruled that a claim for damages always exists if an entry is unlawful. Basic compensation can even be awarded without proof of specific damage. However, the European Court of Justice (ECJ) has made it clear that a violation of the GDPR alone does not automatically constitute a claim for damages; actual damage must be proven.
The prerequisites for claims for damages are:
- A violation of the GDPR.
- Actual material or immaterial damage.
- Causality between the violation and the damage.
- Culpable behaviour on the part of the data processor (e.g. negligence or deliberate disregard of data protection regulations).
In most cases, the defendant is not Schufa Holding AG, but the former contractual partner who made the report. The passive legitimation lies with Schufa or the contractual partner who transmitted the data.
Examples of successful claims for damages:
- A consumer received €4,000 in damages after Barclays Bank reported unauthorised claims to Schufa.
- A court awarded €2,000 in non-pecuniary damages because a negative Schufa entry had been made unlawfully.
- In one case, €5,000 in damages were awarded because consent to the transfer of data was missing.
- One court awarded a plaintiff 1,500 euros in damages for the unlawful processing of his personal data.
The important thing is to
- regularly review your Schufa data.
- Take immediate action in the event of incorrect entries.
- File a written objection to the entry with Schufa and the company that caused the entry.
- Set a deadline for clarification of the facts.
- File a complaint with the data protection supervisory authority if Schufa does not respond.
- Consider legal action and take it if necessary.
- Keep all relevant documents.
It is advisable to seek legal advice if you are unsure about how to effectively enforce your claims.
12. How much compensation is awarded for a false Schufa entry?
The amount of compensation for a false Schufa entry is not fixed, but depends on the specific circumstances of the individual case. Both material and immaterial damages can be claimed.
Material damages include financial losses that can be directly attributed to the incorrect entry. These include, for example:
- Refused loans.
- Higher interest rates due to a poor score.
- Worse contract conditions.
- Restrictions on banking services, such as being refused a current account or a credit card.
Non-material damages are intangible damages caused by the incorrect entry. These include:
- Stress.
- Insecurity.
- Stigmatisation.
- Damage to reputation.
- Impairment of quality of life.
- Loss of control over one’s own data.
- Feelings such as annoyance or frustration.
- Restriction of financial freedom.
Some courts have ruled that even the loss of control over one’s own data can constitute non-material damage. In 2024, the German Federal Court of Justice (BGH) ruled that there is always a right to claim damages if an entry is unlawful and that basic damages can be awarded even without proof of specific damage. However, the European Court of Justice (ECJ) has made it clear that a violation of the GDPR alone does not automatically constitute a claim for damages; actual damage must be proven.
The amount of damages can vary depending on the case. Here are some examples from court rulings:
- A consumer received €4,000 in damages after Barclays Bank reported unauthorised claims to the German credit reference agency Schufa.
- A court awarded €2,000 in compensation for non-material damage because a negative Schufa entry had been made unlawfully.
- In one case, €5,000 in damages were awarded because consent to the transfer of data was missing.
- A court awarded a plaintiff €1,500 in damages because his personal data had been processed unlawfully.
Important prerequisites for a claim for damages are:
- A violation of the GDPR.
- Actual material or immaterial damage.
- Causality between the violation and the damage.
- Culpable behaviour on the part of the data processor.
The defendant is not usually Schufa itself, but the company that caused the incorrect entry. However, both Schufa and the company that transmitted the data have the capacity to be sued.
It is advisable to seek legal advice in the event of uncertainty in order to effectively enforce one’s own claims.
13. Role of a lawyer
A lawyer can take on various roles in the event of problems with Schufa in order to support those affected and enforce their rights. The main roles and activities of a lawyer in connection with Schufa entries are as follows:
- Identifying and challenging incorrect entries: A lawyer can review your Schufa report and identify incorrect or unlawful entries. They can assess whether the conditions for an entry are lawful and whether the applicable data protection regulations have been adhered to.
- Request for deletion: The lawyer can request that Schufa or the reporting company delete unlawful entries. They will usually do this in writing, referring to the relevant laws and articles of the General Data Protection Regulation (GDPR) and the German Federal Data Protection Act (BDSG).
- Asserting claims for deletion: A lawyer can assert your claims for deletion of an entry with legal precision and, if necessary, enforce them in court.
- Lodging an objection: A lawyer can lodge an objection for you against the processing of your data, in particular if there is a special situation that is significantly affected by the entry.
- Assistance with complaints: If Schufa or the reporting company does not respond to the request for deletion, the lawyer can file a complaint with the relevant data protection supervisory authority.
- Initiation of legal proceedings: If all other measures are unsuccessful, a lawyer can prepare and file a lawsuit in court to force the deletion of the entry.
- Asserting claims for damages: In the event of unlawful data processing, the lawyer can assert claims for damages for you. This can include both material damages (e.g. as a result of denied credit) and non-material damages (e.g. stress, reputational damage).
- Advice on rights and obligations: A lawyer can advise you on your rights in connection with the Schufa and data protection. They can explain to you which laws and regulations apply and how you can defend yourself against unjustified entries.
- Representation in complex cases: Legal support should be sought in complex cases or if there is no response. An experienced lawyer is familiar with the mechanisms and tricks of the registrars and can effectively enforce your rights.
- Strategic and legal advice: A lawyer can offer you strategic and legal advice.
- Taking over communication and planning: A lawyer can take over communication and planning with courts, authorities, insurance companies, notaries, etc. for you.
A lawyer specialising in Schufa law is familiar with the procedures of Schufa and the companies and can efficiently represent your rights. Often, a letter from a lawyer is enough to persuade companies to delete the information. The costs for a lawyer can in many cases be reimbursed by the other party if the claim for deletion or compensation is justified.
It is advisable to seek legal support at an early stage, as time is of the essence. The longer a negative entry remains, the greater the financial and personal damage can be. A lawyer can help you protect your credit rating and secure your financial future.
Dr Thomas Schulte is a proven expert in Schufa law and data protection law with decades of experience in the deletion of unlawful entries. For decades, he has been assisting clients who have fallen on hard economic times due to incorrect or unlawful entries.
His qualifications arise from various aspects:
- Specialisation: Dr Schulte specialises in Schufa law and data protection law. This enables him to have an in-depth knowledge of the complex legal interrelationships and pitfalls in this area.
- Many years of experience: He has many years of experience in the deletion of unjustified Schufa entries. He is familiar with the procedures of Schufa and the companies that report entries.
- Comprehensive knowledge: Dr Schulte is familiar with the legal principles such as the General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG). He knows how to apply these laws to enforce his clients‘ rights.
- Successful case handling: Dr Schulte has already helped many clients to restore their credit ratings and defend themselves against unjustified claims. He has successfully closed numerous cases in which unlawful entries were deleted and claims for damages were enforced.
- Knowledge of the other side’s ‘tricks’: Dr Schulte is familiar with the mechanisms and ‘tricks’ of the companies that initiate Schufa entries and can therefore take more effective action against them.
- Legal expertise: Dr Schulte can use the necessary legal leverage to persuade Schufa and the reporting companies to relent. He relies on sound legal argumentation and targeted pressure to have unlawful entries deleted quickly and effectively.
- Nationwide representation: Dr Schulte represents clients nationwide. He offers his services not only in Berlin, but also in other cities in Germany.
- Careful analysis and digital processing: He relies on careful analysis and fast, digital processing to effectively represent his clients‘ interests.
- Legal letters with impact: Often, a legal letter from Dr Schulte is enough to persuade companies to delete their entries.
- Experience in legal disputes: Dr Schulte knows that the other party often only concedes during legal proceedings.
- Understanding of the situation of those affected: Dr Schulte knows that an incorrect Schufa entry can have a massive impact on a person’s financial life. He encourages those affected to take action and assert their rights.
He is also the author of numerous publications on the subject of Schufa and data protection, which underlines his expertise. His law firm has been successfully operating in civil law since 1995, particularly in the areas of internet, reputation and competition law. He offers honest advice, problem solving with clear costs and prospects of success. A lot of information can be found in English or Polish on his website.
Dr Schulte is an experienced lawyer who stands out for his specialisation, his many years of experience, his legal expertise and his commitment to his clients‘ rights. He is an expert on all legal issues relating to the Schufa.
These are some of Dr Thomas Schulte’s articles on the subject of Schufa: Why is Schufa allowed to store my data?
This article explains the legal basis on which Schufa stores consumer data and the rights of those affected. (dschulte.de)
- Despite residual debt discharge – Schufa entry by EON Energie Deutschland GmbH results in poor credit rating. This article deals with the issue of Schufa entries after a residual debt discharge and their impact on creditworthiness. ([dr-schulte.d(https://www.dr-schulte.de/despite-residual-debt-discharge-schufa-entry-of-eon-energie-deutschland-gmbh-ensures-bad-credit-rating/?utm_source=chatgpt.com))
- Erledigungsvermerk fet trotz Erledigung Schufa Holding AGThe article discusses cases in which, despite settlement of a claim, the corresponding note of settlement at Schufa is missing and what steps those affected can take. (dr-schulte.de)
- Freedom! Schufa and Article 21 of the GDPR: A comprehensive guide. This guide explains how consumers can assert their rights under Article 21 of the GDPR against Schufa, in particular the right to object to the processing of personal data.twoj-adwokat-w-niezech.com)
- Delete negative Schufa entries in 3 simple steps – The backdoor solution with Berlin lawyer Dr Thomaschulte. The article presents an effective strategy for removing negative Schufa entries in three steps, supported by the expertise of Dr Thomas Schulte. (twoj-adwokat-w-niemczech.com)
- Delete your SCHUFA entry? Dr Thomas Schulte, a lawyer, can help you effectively! The article describes the options for contesting and deleting negative SCHUFA entries, as well as the importance of legal support in the process. (twoj-adwokat-w-niemczech.com)