Overview

• The European Court of Justice (ECJ) ruled that credit scoring agencies must provide clear explanations of how they calculate scores.
• Consumers have the right to understand which personal data is used and how it influences automated decisions, according to the judgment.
• The case originated from a dispute in Austria where a mobile provider denied a contract due to insufficient creditworthiness.
• Consumer advocates hailed the decision as a milestone for transparency but warned about ongoing risks of structural bias in scoring systems.
• The Schufa, Germany's leading credit agency, welcomed the ruling and stated it already complies with the outlined requirements.