Theringa’s consumer protection ministry advocates for greater transparency regarding credit scoring provided by agencies such as Schufa. “Behind a Schufa score there is always a human being. And for that person, a number can have very concrete consequences,” stated Thuringia’s Consumer Protection Minister, Beate Meißner (CDU), on Sunday.
A Schufa score can determine whether a person can open a current account, be approved for a credit card, or purchase goods on credit. Due to the wide-ranging impact these scores have on people’s everyday lives, consumer advocates have been demanding more transparency for years, according to Meißner.
Since the spring, Schufa has been evaluating consumers’ creditworthiness on a scale ranging from 100 to 999 points. This rating is based on twelve publicly accessible criteria. A new aspect of the system is that both consumers and companies now receive the same score. However, the Federal Association of Consumer Centres noted that initially, only 25 percent of Schufa contractual partners are utilizing the new score, meaning older industry-specific scores are still in circulation. Nevertheless, Meißner welcomed the approach, stating, “The attempt to create more transparency is correct and praiseworthy. People must know why and based on what data their credit rating has changed.”
Consumer centers have been reporting an increase in instances where they encounter issues, lack of clarity, or potential disadvantages related to these scores. Consequently, the Thuringia Consumer Center is participating in a nationwide case collection effort that runs until August 31st. They are actively seeking documented cases where false or outdated data cannot be corrected through the Schufa app, or where individuals experience unexpectedly low or deteriorating scores.
