When the name ‘SCHUFA’ comes up in a regulars‘ table discussion, even the most beer-drunken of contemporaries fall silent for a short time in silent awe. SCHUFA Holding AG (also: Schutzgemeinschaft für allgemeine Kreditsicherung) has a bad reputation among the population, and the most bizarre stories are circulating about its methods. None of them are true, but Mr Müller from next door often doesn’t know what data the credit bureau receives, how it is processed and to whom it is ultimately forwarded.
The mysterious world of SCHUFA scoring
For several years, the SCHUFA has offered a particularly mysterious service: the Information Scoring Service (ASS). Based on borrower characteristics such as ‘customer since’, ‘place of residence’, ‘occupation’, ‘collateral’, but also ‘age’, points are awarded, weighted and then summarised into a credit rating. The lower the score, the lower the creditworthiness and the higher the risk of default. This overall score is intended to facilitate the granting of credit. If the creditworthiness is sufficient, a loan can be granted.
This service is secretive because SCHUFA does not provide any information on how the scoring works in detail. SCHUFA keeps the exact calculation formula of its scoring system under lock and key and has so far resisted all calls to disclose it on the grounds that the way the score is calculated is a trade secret and the company is in competition with other providers.
Incorrect data in the SCHUFA system
However, it is debatable whether the assessment and scoring by the powerful SCHUFA is always correct and appropriate. This is because customers are often denied a loan or mobile phone contract because the SCHUFA scoring indicates that their creditworthiness is too low – even in cases where the person concerned is not aware of any debt.
For example, the non-payment of a bill by Mr. Müller in the mail order business may also be related to the fact that the goods ordered were already broken before they arrived and Mr. Müller is asserting warranty rights. According to the rules of the ‘SCHUFA system’, the mail order company would now actually be obliged to report at least the characteristic ‘claim disputed’ to SCHUFA Holding AG. In practice, however, this notification often does not take place. The database then shows a balance for a highly disputed claim, although there is no court ruling on this balance.
Another example: the non-repayment of a loan can certainly be due to the fact that Mr. Müller is unwilling to pay. However, it can also have all sorts of other causes, e.g. because the parties are currently in dispute about the due date of the claim. Nevertheless, the outstanding balance is reported to SCHUFA Holding AG as an unpaid debt. Mr. Miller is thus ‘named and shamed’ by SCHUFA. This can lead to major problems, because this annoying database entry can mean a poor credit rating when concluding future mobile phone contracts or applying for credit.
Expert recommendation
So how can Mr Miller be helped?
Experts advise regularly checking one’s own SCHUFA data. The scoring system itself is a purely statistical procedure. It originated in the United States and was already in use there before the First World War. The scoring system can only work properly if the data influencing the score value is correct.
Collecting ‘correct data’ means that the contractual partner must also be legally entitled to the claim. However, it is not uncommon for the data entered to be incorrect, and with a database of around 65 million stored individuals, this is obviously to be expected. In order to have negative entries deleted, a claim for cancellation can be made against the person who entered the negative entry. If a negative entry does not meet the requirements of data protection law, this claim can also be enforced in court.
In principle, it is advisable to consult an expert, because the case law on the subject of credit scoring is constantly changing.
Developments since 2005
Since the publication of the article about SCHUFA in 2005, the legal situation regarding the scoring system and data protection regulations has changed considerably.
Introduction of Section 28b of the Federal Data Protection Act (2009):
In 2009, Section 28b of the Federal Data Protection Act (BDSG) was introduced. This paragraph allows the use of scoring to assess contractual relationships provided that certain conditions are met. The aim was to create more legal certainty and transparency for consumers.
Extended rights to information:
The amendment of the BDSG also strengthened consumers‘ rights to information. Those affected now have a right to information about how their score is determined.
ECJ ruling (2023):
In December 2023, the ECJ ruled that SCHUFA scoring may violate the General Data Protection Regulation (GDPR) if companies rely heavily on automated assessments.
Conclusion
The changes since 2005 show a clear trend towards more transparency and protection for consumers. The legal adjustments aim to maintain a balance between the interests of creditors and consumers. The recent ECJ rulings could also result in a fundamental re-evaluation of credit bureaus‘ practices, which could lead to an improvement in the situation for consumers in the long term.
Incorrect SCHUFA entries or unfair scoring results? I can help you!
SCHUFA scoring can determine your creditworthiness and thus financial decisions. However, the data is often incorrect, and negative entries affect your credit rating unjustifiably. This often leads to rejected loans or contracts that are essential for your everyday life.
As an experienced lawyer based in Berlin, I can help you to have unauthorised SCHUFA entries checked and deleted. I will legally review your data, enforce your claims and ensure that your credit rating is restored. Recent ECJ rulings in particular have given consumers more rights than ever before.
Contact me for an initial consultation – together we will clarify the steps necessary to protect your credit rating.
Dr Thomas Schulte
Lawyer
Malteserstraße 170, 12277 Berlin
📧 dr.schulte@dr-schulte.de
📞 030 – 22 19 220 20
📠 030 – 22 19 220 21
Dr Thomas Schulte, a lawyer in Berlin, can help with incorrect SCHUFA entries and scoring issues. Have your credit rating checked and legally enforced.
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:
- „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 - „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.
„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!