The Schufa distributes grades for adults. How can it be that a private institution rises up to become a teacher without being asked and distributes GRADES to citizens?
The people affected are regularly no longer pupils, but adults. The basis for these grades is the personal data of the persons concerned. The grades given to citizens are based on data that Schufa uses. However, the protection of this data is considered necessary in the European Union and accordingly in Germany. Data protection is an important part of our free, democratic society. The unsolicited distribution of grades by Schufa can be a burden, and in addition, the data collected is often used without being requested. So how can it be that Schufa even exists as a phenomenon?
Basics of data processing
First and foremost, data processing means nothing more than the organized handling of data with the aim of gaining information about these data or changing them (see Art. 4 No. 2 General Data Protection Regulation – GDPR). The aim of data processing was actually to make our lives easier. It should eliminate monotonous routine work and enable faster processing of large amounts of data. This ensures greater efficiency through lower personnel costs and also speed.
General Data Protection Regulation – GDPR
Due to the importance of data protection, the European Union has established rules for data processing and formulated high penalties for data protection violations. The Data Protection Basic Regulation (DSGVO for short) provides the legal framework for data processing in the European Union and is also intended to guarantee the protection of personal data. It is a regulation of the European Union that has been fully applicable throughout the EU since May 25, 2018.
Personal data is any information relating to an identified or identifiable living person (Art. 4 No. 1 GDPR). Partial information that contributes to the identification of a person is also considered personal data.
Examples of personal data are:
– The name
– The address
– A personalized e-mail address
– The ID number
– General location data
– The IP address used
– Medical patient data
All of this data and other personal data may not be collected and processed in the EU without further ado.
It should be noted here that, in accordance with the provisions of Regulation (EU) 2016/679 (General Data Protection Regulation), in particular Article 6 (1) in conjunction with Art. 4 No. 2 GDPR, any data transfer and therefore any negative entry at credit reference agencies such as Schufa Holding AG is unlawful, unless the responsible party, i.e. Schufa or the person reporting it, can prove that a legally standardized justification applies.
Consent and agreement?
In most cases, the magic word here is “consent”. Article 6 I of the GDPR regulates the lawfulness of the processing of personal data under certain conditions. These conditions are:
– The consent of the data subject
– The processing is carried out on the basis of a contract
– The processing is necessary to protect the vital interests of the data subject
– The processing is necessary for the performance of a task carried out in the public interest
– Necessary to protect the vital interests of the data subject – Necessary for the performance of a task carried out in the public interest
Everyone is familiar with the “mandatory” signatures on the “Schufa consent”, which are quickly provided when almost every contract is concluded. In most cases, Schufa collects data on the basis of your consent (Art. 6 I lit. a) GDPR).
However, Schufa often relies on Art. 6 I lit f) GDPR (in conjunction with § 31 BDSG), i.e. the overriding of legitimate interest, in the absence of consent. This interest is said to consist of Schufa providing its contractual partners with information about credit-relevant circumstances of potential customers. This legitimate interest is also recognized by case law (see OLG Schleswig – judgment of July 2, 2021 – 17 U 15/21; OLG Oldenburg – judgment of November 23, 2021 – 13 U 63/21; BGH – judgment of July 7, 1983 – III ZR 159/82).
Naturally, Schufa’s customers are primarily companies that offer consumers a type of loan or other service that depends on the entrepreneur’s trust in the consumer’s ability to pay. Examples include banks, savings banks or mobile phone providers such as Deutsche Telekom, Vodafone or o2. Many Schufa entries are also made by collection agencies such as Bad Homburger Inkasso GmbH, BID Bayerischer Inkasso Dienst AG, dohr Inkasso GmbH & Co. KG, EOS DID Deutscher Inkasso Dienst, HIT Hanseatische Inkasso Treuhand GmbH, Infoscore Forderungsmanagement GmbH, KSP Kanzlei Dr. Seegers, ProCash Collection Services GmbH or Real Inkasso GmbH & Co. KG.
The courts have also ruled in this regard that the credit industry has a legitimate interest in being informed about insolvent borrowers.
But why are Schufa entries not deleted immediately after they have been settled?
With regard to the deletion of settled Schufa entries, Schufa refers to the “Rules of Conduct for the Review and Deletion Periods of Personal Data by German Credit Reporting Agencies”, which was published by the association “Die Wirtschaftsauskunfteien e.V.” and approved by the responsible data protection officer. The members of this association are CRIF GmbH, Creditreform Boniversum GmbH, Dun & Bradstreet Deutschland GmbH, IHD KREDITSCHUTZVEREIN E.V., infoscore Consumer Data GmbH and SCHUFA Holding AG.
Accordingly, a Schufa entry will be deleted three years to the day after it has been settled.
However, the Code of Conduct also states: “These rules of conduct do not preclude a special examination in individual cases at the request of the data subject (pursuant to Art. 17, 21 DS-GVO).”
According to Art. 17 of the GDPR, citizens have the so-called “right to be forgotten”. This right states that the data subject has the right to have personal data deleted if this data is no longer needed.
In the case of negative entries that have been settled, a claim for deletion of these entries is presumably intended according to Art. 17 I lit. a) GDPR. However, this is not the case. For example, the Regional Court of Wiesbaden ruled that credit reference agencies are not obliged under Art. 17 I lit. a) GDPR to delete legally collected data that serves a legitimate interest upon request because this may result in an increased risk of default in the future. (LG Wiesbaden, judgment of 21 February 2019, Az. 2 O 237/18)
The reasoning is that credit reference agencies store and process data in order to protect their legitimate interests as a protection organization for the economy and in the interest of their contractual partners.
This judgment is not without criticism. In its reasoning, the court referred to Federal Court of Justice rulings from 1978 and 1983. At that time, on the one hand, citizens did not depend on so many contractual partners to participate in social life, and on the other hand, not every one of these contractual partners carried out a credit check, which is now possible in the digital age without much effort and is also always carried out by most companies.
It is also possible to request deletion in accordance with Art. 17 I lit. c). To do this, the data subject would have to have exercised his right of objection due to a special situation in accordance with Art. 21 I 1 GDPR. This special situation has not been sufficiently specified by the legislator and must therefore be determined on a case-by-case basis. Based on previous case law, a catalog has been developed that can be used as a guide. If the data subject exercises his right of objection vis-à-vis Schufa, Schufa is obliged to stop the processing. If Schufa does not stop the processing, it is obliged to
- prove compelling reasons worthy of protection which
- the interests, rights and freedoms of the data subject in the specific case.
In this case, it is to be assumed in individual cases that the interests of the data subject in case of doubt outweigh those of the person responsible (the Schufa).
Conclusion:
Negative entries in credit agencies such as Schufa nowadays mean that even with relatively small claims, those affected run the risk of no longer being able to conclude contracts that are necessary for their livelihoods.
In other words, most people are afraid of Schufa, and this seems justified.
V.i.S.d.P.:
Valentin Markus Schulte
Stud. Iur & Volkswirt
About the author:
Valentin Markus Schulte is a law student and research assistant at the law firm of Dr. Thomas Schulte in Berlin. In addition to his law studies, Valentin Schulte also studied economics and has already obtained a master’s degree in this field.
Contact:
Dr. Thomas Schulte’s law firm
Malteserstraße 170
12277 Berlin
Telephone: +49 30 221922020
Email: valentin.schulte@dr-schulte.de
Dr. Schulte, a lawyer, has been successfully practicing civil law since 1995, with a focus on internet, reputation and competition law. She represents the interests of individual investors throughout Germany. Additional sender information with the law firm’s location can be found in the imprint on the website www.dr-schulte.de.
SCHUFA-Negativeinträge: Was tun, wenn Ihre Bonität zu Unrecht belastet wird?
A lot of information can be found in English or Polish on this website.
SCHUFA einfach erklärt: Alles über den SCHUFA-Score und Bonität
Delete SCHUFA entry? Dr. Schulte provides effective help!
SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is the largest credit reporting agency in Germany and plays a crucial role in assessing the creditworthiness of private individuals and companies. But what can you do if a negative SCHUFA entry is blocking your financial plans?
Problems with a negative SCHUFA entry?
A negative SCHUFA entry often arises faster than you think – whether it’s due to:
- Unpaid bills (knowingly or unknowingly)
- Disputes with companies
- Claims that have been wrongly reported
Such entries can have far-reaching consequences, such as the refusal of loans, energy or mobile phone contracts. It becomes particularly problematic when companies unlawfully report entries or make threats in order to enforce claims.
Your rights: Inaccurate or prematurely reported SCHUFA entries can be contested and possibly deleted prematurely.
Why a specialized lawyer is important
Experience shows that those affected often fail without legal support. Lawyers can:
- Identify and challenge inaccurate entries
- Request deletion from the SCHUFA or reporting companies
- Take legal action against unjustified entries
Dr. Thomas Schulte, a lawyer in Berlin, has specialized in representing SCHUFA victims for many years. With careful preparation, we often achieve the deletion of unjustified entries within one to three weeks.
SCHUFA scoring and your rights
SCHUFA scoring is not only based on negative entries, but also on so-called “soft” criteria such as:
- Number of credit cards
- Current accounts with overdraft interest
- Existing mobile phone or electricity contracts
According to SCHUFA, more than 500,000 pieces of information are provided daily, although not all of it is always correct. The General Data Protection Regulation (GDPR) gives you rights to defend yourself against unauthorized entries or incorrect data. Take advantage of these opportunities!
Contact Dr. Schulte for quick help
Don’t let SCHUFA entries ruin your future! Contact us for expert advice:
- Phone: +49 (0) 30 – 22 19 220 20
- E-mail: dr.schulte@dr-schulte.de
Location: Malteserstraße 170, 12277 Berlin
Nationwide representation: Whether Hamburg, Munich, Frankfurt or any other city – we take care of your concerns.
Your advantages with us:
- Fast processing: Deletion often in 1-3 weeks
- Digital communication: Simple and efficient
- Legal expertise: Nationwide representation and many years of experience
Call us or write to us – we look forward to helping you!
Further information:
- SCHUFA scoring and data protection: Your rights at a glance
- Dispute incorrect SCHUFA entries – This is how it’s done
- Compensation for unjustified SCHUFA entries
Dr. Thomas Schulte – Your point of contact for legal questions concerning the SCHUFA!
On dr.schulte.de, you will find a comprehensive collection of articles about Schufa-related topics. Explore insights into understanding your Schufa score (Understanding Schufa Scores), removing negative entries (Remove Negative Schufa Entries), and legal guidance for challenging inaccurate data (Legal Help for Schufa Issues). For job applicants, business owners, or anyone concerned about creditworthiness, our expert resources provide actionable advice and solutions to protect your financial future. Visit dr.schulte.de to stay informed and empowered!