Schufa’s Case C-634/21 on ADM: the ‘Lenders’ Quest’ for GDPR-friendly Scoring has not been settled yet! 

Abstract

In the ever-changing landscape of data protection and Automated Decision-Making (ADM), a notable dispute has arisen between Land Hessen, the Federal State of Hesse’s Data Protection and Freedom of Information Commissioner (HBDI), and OQ, a consumer who was refused a loan based on SCHUFA’s predictive score. The case, C-634/21, delves into the heart of Article 22 of the General Data Protection Regulation (GDPR) , questioning whether SCHUFA’s use of probability scores qualifies as a ‘weapon’ of math destruction, raising concerns about legal gaps in data subject protection. This blog entry discusses some key issues, legal complexities, and the recent CJEU ruling on December 7, 2023, which sheds no light on the impact of AMD practices on transparency rights