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[EU] Apparently from 20 Nov, pay later apps need to view past purchases and income to function (lemmy.dbzer0.com)
submitted 2 days ago by to c/privacy@lemmy.ml
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I used to always prefer to pay later (with no interest), cuz i heard it would prove schufa score but I just received an email from klarna, how in the future they will need to view all my purchases history to make sure it fits my budget and income.

What the heck? I thought EU was better for privacy. If we don't buy things on credit, we get a bad credit score, and if we do, then we have to sell our data ?

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[–] [S] 1 point 2 days ago (5 children)

I think we can't demonize one part of the system without talking about the other. Credit history has to be maintained incase we want to buy basic things like housing or cars cuz otherwise they are too expensive.

And cash isn't a viable option due to initiatives like digital euro. Iirc, from next year we can't buy anything above 3k with cash (there will be some kyc involved) and above 20k is just not allowed.

This law in particular creates reasonable grounds for these companies to collect data about our income and expenditure for eventually implementing dynamic pricing. And I wonder, was there no other way to implement this without sharing our financial data?

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  • [–] 4 points 2 days ago (1 child)

    Credit scores didn't exist in the 1950s and people bought houses just fine.

    A credit score is already tracking data about you and your history of payments and how much.

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  • [–] [S] 1 point 2 days ago

    Yeah, housing was much more affordable back then.

    And based on what I have heard, when you pay out of pocket, it does not show that you are someone responsible vs if you buy on credit and then pay before the deadline. The latter is more stronger proof of financial responsiblity than the former. Not that I agree with that logic

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  • [–] 3 points 2 days ago (2 children)

    Is credit scores a thing in EU? In Denmark the banks only look at your disposable income and savings in order to grant a loan.

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  • [–] [S] 1 point 2 days ago (1 child)

    Kinda. In germany we have schufa, and its not just for getting a loan. Every landlord here asks for it if you want to rent an apartment or even some WG (apartment sharing).

    I think if a bank were to look into my income and savings, that's wouldn't be a problem. I bet they get a lot scruitny from authorities. But companies like klarna and paypal that offers "pay later in 30 day with 0% interest", don't. This option was great way to slowly increase your schufa score.

    My concern is that, this law essentially gives these companies legitimate grounds to collect this data. Which will eventually be used in dynamic pricing. I think kaufland online is already doing dynamic pricing (annectdotal evidence).

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