The European Union’s chief data protection commission on Thursday recommended that personal data such as search queries and internet browsing history should not be used to assess credit points and creditworthiness.
The Recommendation was developed by the European Data Protection Supervisor (EDPS), an independent agency attached to the EU, which advises policy makers on “all matters relating to the processing of personal data”.
“The EDPS considers that inferring credit risk for consumers from data such as search query data or online browsing activities is incompatible with the principles of purposefulness, fairness and transparency and the relevance of data processing. Therefore, the EDPS recommends that the ban be explicitly extended to search query data or
In addition, the Agency advises that financial and credit providers should also be prohibited from accessing health data, such as cancer data, and the General Data Protection Regulation.
“Adherence to the principle of proportionality in the processing of personal data
The EDPS’s recommendations follow the European Commission’s proposal on 30 June 2021 to review two sets of EU rules, including consumer protection. updating the old EU Directive on credit agreements (2008/48 / EC)
Although the EDPS’s recommendations cover a number of issues, the Agency’s officials did not accidentally address the issue of using online browsing history for credit ratings.
responded in which IMF researchers argued that credit scores would be much more accurate if financial ratings were enriched with non-financial data such as “type of browser and hardware used to access the Internet, history of online searches and purchases”
However, the IMF recommendation, which has been condemned everywhere and downright creepy, has shown the fundamental fear of much of the banking sector that it will lose ground to technology companies such as Amazon, Facebook and Google.
*) Although the EDPS has no legislative role, the Agency’s recommendations have made a significant contribution to Principles of the EU’s General Data Protection Regulation (GDPR) and may indicate that at least the EU is not ready for the supervisory nightmare that the IMF seems to be willing to accept on behalf of members of the banking sector, The Record wrote.
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