How long may a credit bureau in Germany store information about a settled payment default? In a ruling with major practical relevance, the Higher Regional Court (OLG) of Munich held: a storage period of three years is, in principle, lawful and appropriate. The decision of April 11, 2025 (Ref. 14 U 3590/24) strengthens the position of credit bureaus and the businesses that rely on their data.
The Case: Debts Settled, But the Negative Entry Remains
A consumer had stopped paying instalments on two loans dating from 2017. Only in 2022 did he fully settle the remaining debts. The entries stored by a credit bureau nevertheless remained and caused difficulties when applying for new credit. He sued for early deletion to restore his creditworthiness.
OLG Munich’s Decision: Three Years of Storage Are Necessary
The court dismissed the action. The credit bureau is entitled to store information about the settled payment defaults for a period of three years after repayment. There is no claim to early deletion. The judges based their decision on a clear balancing of interests:
Forecast value of the data: A settled payment default still has high probative value for payment behaviour in the years that follow. The court relied on the finding that the likelihood of another default remains significantly elevated even three years after settlement.
Protection of economic transactions: The interest of the bureau and its partners (banks, telcos, retailers) in reliable credit checks outweighs the individual’s interest in rapid deletion. Early deletion would paint an unduly rosy picture of creditworthiness and raise lenders’ risk.
No transfer of public rules: Shorter deletion periods in public debtor registers do not apply to private credit bureaus, which pursue different purposes.
What Does the Ruling Mean for Your Business?
Legal certainty for bureaus and lenders: The ruling provides solid legal footing for the common practice of storing settled negative items for three years. Companies conducting credit checks can rely on the evidentiary value of this data.
Reliable risk assessment: For all lenders (banks, leasing firms, online shops offering instalments), this means continued access to a solid data basis for risk assessment.
Clarity for handling customer requests: If customers demand immediate deletion after paying off a debt, companies can cite this ruling and refer to the regular three‑year deletion period.
FAQ: Credit Data & Deletion Periods — What You Need to Know
When does the three‑year period start?
It begins on the exact date the claim is fully settled—that is, the date of the final payment.
Are there exceptions for faster deletion?
Yes. Early deletion is possible and legally required if the data were incorrect or unlawfully recorded from the outset. For very small claims (under €2,000) paid within six weeks, faster deletion may also be possible if the claim is not titled.
What happens after three years?
After the statutory storage period expires, the bureau must automatically and completely delete the data relating to the settled matter.
What data may a bureau store at all?
Data relevant to assessing creditworthiness, such as information on loans and accounts, payment defaults, collection actions, or data from public registers.
Conclusion: Credit History Outweighs the Desire for a Quick Fresh Start
The OLG Munich ruling cements a central practice in German lending. It makes clear that reliable risk assessment in commerce rests on meaningful payment history. A one‑time default doesn’t lose relevance with the last instalment; it shapes the credit forecast for another three years. For companies, this means a stronger basis for decisions; for consumers, a reminder that responsible financial behaviour is a long‑term matter.
