Come on, dear banks and merchants: Ensure that a mathematically generated credit score from a credit reporting agency for an individual does not have a "substantial" impact on the credit decision. That's what the European Court of Justice wants. Need a translation aid? Certainly: The score must not be "decisive" and should not be used "to a considerable extent" – that's how the term "moderate" is defined, according to the Duden dictionary. Synonyms are included for free: "Definitive," "determining," "crucial," "weighty," "predominant." Ah, got it.

The interpretation of the Luxembourg verdict allows room for discretion. The Schufa score is widespread and a crucial criterion for various credit decisions. Where the boundary to "substantial" lies may often not be clear. A bank providing a mortgage might find it relatively straightforward because it already considers additional documents such as salary and asset statements. A credit score is just one factor among many. However, in mass consumer lending or for associated installment financing in retail, creativity is needed to securely integrate the automatically generated assessment from a credit reporting agency into decision processes.

Nevertheless, according to Schufa's interpretation ahead of the ruling, banks and companies can utilize a "negative factor," like a recorded payment default, as a reason for their decision. This can be done without having to depend on the credit score. After all, other data, such as the number of accounts, credit history, or relocations, also contribute to the statistical value.

Unfortunately, the financial industry is accustomed to fundamental court rulings that bring confusion. After the Federal Court of Justice's decision on general terms and conditions (AGB), a dispute rages on about the statute of limitations for claims arising from an increase in account fees. Another decision on this matter is expected shortly in the court in Karlsruhe. In the dispute over interest calculation in ancient premium savings contracts, there was controversy over which interest data is suitable. Only gradually did court rulings and expert recommendations provide guidance here.

This time, as well, one must initially rely on discretion to assess scoring practices. This also applies to courts, which will probably have to deal with various cases from now on. Hopefully, legal decisions will bring practical and applicable solutions. By the way, the boundary between "moderate" and "immoderate" is also fluid.