Automated Decision-Making in Creditworthiness Assessments and the Right to Explanation : A Study of Articles 15(1)h and 22 of the GDPR, Article 18 of the Consumer Credit Directive and Article 86 of the AI Act

Sammanfattning

This thesis examines the European Union legal framework governing individuals’ rights to access and explanation in automated creditworthiness assessments. Such assessments, conducted increasingly through artificial intelligence and machine learning systems, determine access to essential financial services and may significantly affect individuals’ socio-economic opportunities. The analysis focuses on the interplay between Articles 15(1)h and 22 of the General Data Protection Regulation, Article 18 of the Consumer Credit Directive II, and Article 86 of the Artificial Intelligence Act. Using the EU legal dogmatic method, the study evaluates relevant legislative provisions, case law from the Court of Justice of the European Union (including C-634/21 SCHUFA and C-203/22 CK v. D&B), and regulatory guidance from the European Data Protection Board. The thesis also discusses the concept of access to fair credit as a fundamental right in light of the Artificial Intelligence Act. The findings confirm that EU law recognises a substantive right to explanation in the context of automated decision-making, yet the scope and practical enforceability of this right remain constrained by factors such as trade secret protections, technical opacity of AI systems, and fragmented decision-making chains. While SCHUFA closed a potential loophole by recognising credit scores as qualifying decisions under Article 22, national interpretations vary, creating uncertainty for both data subjects and credit rating agencies. The thesis argues that the current framework provides important transparency and accountability safeguards but is insufficient to ensure meaningful contestation of algorithmic credit decisions in all cases. It concludes with recommendations to clarify the legislative standards governing the right to explanation, to promote harmonised interpretation and enforcement across the EU, and to ensure that transparency obligations are balanced proportionately against the protection of intellectual property and trade secrets.