CRIF faces class action lawsuit over credit scoring data practices

A class action lawsuit has been opened against the information service provider CRIF regarding its credit scoring practices. Recent rulings by the Austrian Federal Administrative Court and the Supreme Court have established that data collected solely for direct marketing purposes cannot be repurposed for creditworthiness assessments.

Legal experts from the NGO noyb argue that CRIF used data purchased from address publishers in violation of data protection laws. Investigations suggest that for approximately 90 percent of the millions of people in Austria whose data was collected by CRIF, the credit scores were based on demographic factors such as age, gender, and address rather than actual financial information.

Because these scores are used by banks, insurers, and service providers, a low rating can have significant personal consequences for consumers. Affected individuals may be eligible to claim damages of up to approximately 500 euros.