🇩🇪 SCHUFA faces a class action lawsuit over a database that customers were not informed about

The European data protection organization NOYB is preparing a class action lawsuit against SCHUFA over the so-called shadow database.

It turned out that Germany’s largest credit information company ⁠can store old information on loans, foreclosure proceedings, private insolvencies, and already settled debts for up to ten years. However, customers were not told about this “historical” information, even if they requested a full copy of their data.

SCHUFA says the historical data is used to test new credit scoring models. NOYB believes this violates citizens’ right to be informed, and is not only preparing a request to delete the data, but also a class action lawsuit for compensation. Up to 68 million people could be affected—practically every adult in Germany.

It may depend on SCHUFA whether a person gets an apartment, a mobile phone contract, a loan, or the ability to buy a product on installments.

And now it turns out that the organization which has assessed citizens’ financial transparency for years has itself kept a data set about them—one whose existence it would rather not have informed citizens about.

💥 Our channel: Node of Time EN