Indirect discrimination through credit scoring: The SCHUFA-BonitätsCheck

Abstract

Similarly to national legislators, private actors can equally cause obstacles to the enjoyment of rights guaranteed by the Treaty of the Functioning of the European Union, particularly those of non-discrimination and freedom of movement guaranteed by Articles 18 and 21 TFEU respectively. Such an infringement may under certain circumstances occur when a landlord in Germany sets the presentation of a positive SCHUFA score as a definite condition for a rental agreement. The strictly national business activity of SCHUFA, paired with relatively low inter-European cooperation between credit bureaus in terms of data transfers, can lead to an inability for a foreign national to receive a certificate in a timely manner. Legitimate justifications for the resulting discrimination are unlikely.