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Section 31 Protection of commercial transactions in the case of scoring and credit reports

(1) For the purpose of deciding on the creation, execution or termination of a contractual relationship with a natural person, the use of a probability value for certain future action by this person (scoring) shall be permitted only if

  1. the provisions of data protection law have been followed;
  2. the data used to calculate the probability value are demonstrably essential for calculating the probability of the action on the basis of a scientifically recognized mathematic-statistical procedure;
  3. other data in addition to address data are used to calculated the probability value; and
  4. if address data are used, the data subject was notified ahead of time of the planned use of these data; this notification shall be documented.

(2) The use of a probability value calculated by credit reporting agencies to determine a natural person’s ability and willingness to pay shall be permitted in the case of including information on claims only as far as the conditions of subsection 1 are met and only claims concerning a performance owed which has not been rendered on time are considered

  1. which have been established by a final decision or a decision declared enforceable for the time being, or if an executory title has been issued under Section 794 of the Code of Civil Procedures,
  2.  which have been established under Section 178 of the Insolvency Act and have not been disputed by the debtor at the verification meeting,
  3. which the debtor has explicitly acknowledged,
  4. for which
    1. the debtor has received at least two written reminders after the due date of the claim,
    2. at least four weeks have elapsed since the first reminder,
    3. the debtor was previously informed, at least in the first reminder, of possible consideration by a credit reporting agency and
    4. the debtor has not disputed the claim, or
  5. the contractual relationship on which the claim is based can be terminated without prior notice for payment in arrears and the debtor has been informed of possible consideration by a credit reporting agency.

The lawfulness of processing, including the calculation of probability values, other data relevant for credit reports pursuant to general data protection law shall remain unaffected.