Shortened storage time for entries on personal bankruptcy
In the event of private insolvency, Schufa will only store the data of those affected for six months instead of three years. The company is thus reacting to a judgment by the European Court of Justice that is still pending.
Six months instead of three years: Schufa shortens the storage period for entries on completed private bankruptcies. Ground there is a pending decision by the European Court of Justice.
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Schufa shortens the entry period for private insolvency
They want to create clarity and security for consumers, they say on the part the Schufa. In addition, the association wants to enable those affected to make a quick economic restart. However, the technical implementation will take about four weeks.
The Federal Court of Justice (BGH) recently announced that it was suspending proceedings in this regard for the time being in order to await a ruling by the European Court of Justice (ECJ) in two similar cases.
BGH negotiates case: No rental apartment due to Schufa entry
Consumer bankruptcy allows individuals to free themselves from their debts, even if they cannot repay them in full. At the end there is the so-called residual debt exemption. Information on this is publicly available for six months on an official internet portal.
However, it is up to the BGH a case before, in which a former self-employed person from northern Germany argues with the Schufa. He had to file for bankruptcy in 2013. He was granted discharge of residual debt in 2019 and entered in the nationwide insolvency portal.
Data storage longer than in the public register
The plaintiff later wanted to rent an apartment. He was denied this because Schufa retrieved and stored the relevant data – longer than the public register. He therefore requested that the credit agency should delete his data. The company denied the request, citing the code of conduct for credit reporting agencies.
The Federal Court of Justice and the European Court of Justice are now examining whether a legal regulation is necessary specifically for credit agencies. Because the General Data Protection Regulation of May 2018 does not contain such a regulation.
Schufa: The decision of the ECJ also affects others
A court decision is expected in the summer of 2023. However, the interpretations of the ECJ will not only be binding for the Schufa, but for all credit bureaus in Germany and possibly Europe.
According to Schufa, the shorter storage period for the discharge of residual debt does not change the business model. In addition, the number of approximately 250,000 people affected has no fundamental impact on the scoring procedure and its validity.
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