New German Data Protection Act (BDSG neu) section 31
Protection of commerce in scoring and credit checks
Paragraph 1 section 31: New German Data Protection Act (BDSG neu)
The use of a probability value on a certain future behaviour of a natural person for the purpose of deciding on establishing, executing or terminating a contract with that person (i.e. Scoring) is only permitted if
- data privacy law has been complied with,
- the data used for the calculation of the probability value are based on a scientifically acknowledged mathematical and statistical procedure, which is verifiably relevant to the calculation of the probability of the relevant behaviour,
- the calculation of the probability value is not based exclusively on address details, and
- in cases where address details are used: the data subject was notified of the intended use of his or her data prior to calculation of the probability value; moreover, such notification must be documented.
Paragraph 2 section 31: New German Data Protection Act (BDSG neu)
A probability value from a credit agency concerning the ability or willingness of a natural person to pay may only be used in obtaining information about outstanding receivables if the conditions in paragraph 1 are met and if the value only covers receivables in respect of due performance that have not been paid up despite being due for payment. At least one of the following conditions (1-4) must also apply:
- The receivables must have been established through a legally enforceable judgement or through a judgement declared provisionally enforceable, or there must be a debt instrument in respect of the receivables as specified in the German Code of Civil Procedure (ZPO), section 794.
- They must have been established under the German Insolvency Code (Insolvenzordnung) section 178 without being contested by the debtor at the creditors’ meeting, but having been expressly recognised by the same.
- The following four conditions (a-d) are all met:
a/ The debtor received at least two written reminders after the due date of the outstanding receivable.
b/ The first reminder is at least four weeks old.
c/ The debtor was previously notified that his or her case may be passed on to a credit agency, and such notification was sent to the debtor no earlier than with the first reminder.
d/ The debtor has not contested the outstanding receivable.
- The contract underlying the receivables can be terminated without notice in the event of arrears, and the debtor was previously notified that information about such receivables might be passed onto a credit agency.
These provisions do not affect the legitimacy of processing, including the determination of probability values, concerning other credit-related data under general data privacy law.
Boniversum – EU GDPR – duty of information
Which data are stored by Boniversum? When, why and on what legal basis? Following the specifications of the EU General Data Protection Regulation (EU GDPR), we need to provide you with detailed information about the way we collect, process and store data.