EDPS Opinion on the upcoming revision of the EU Consumer Credit Directive

In late August, the European Data Protection Supervisor (EDPS) published an opinion on the European Commission’s draft Consumer Credit Directive. The EDPS saw that this legislative initiative has a clear impact on the protection of rights in the processing of personal data. In particular, according to the EDPS, provisions relating to the assessment of creditworthiness and personalized offers based on automated processing will have such an impact.

The EDPS supported the harmonization and consumer protection initiative of the draft Directive, while pointing out

• the legitimacy of restrictions on the data that can be used to assess creditworthiness. There was also a request to extend these limitations to any specific categories of personal data. Also, information about individuals’ internet browsing activities should, according to the EDPS, be included in this scope;
• the need to establish appropriate requirements and obligations concerning credit information databases and third parties providing credit assessment services. In particular, harmonization of the categories of information that can be included in these databases is requested;
• the need to ensure that consumers are provided with relevant information on time and that they can request an assessment. This necessity would arise in the case of the assessment of creditworthiness through profiling or other automated processing of personal data.

This opinion is not binding. It only represents the views of the EDPS expressed with the work on the Consumer Credit Directive. However, it may have an impact on the future development of the Consumer Credit Directive.

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