The Dutch Data Protection Authority (Autoriteit Persoonsgegevens, or AP) has imposed a hefty €2.7 million fine on Experian Nederland, a major credit reporting agency, for serious breaches of privacy laws. The penalty stems from the company’s unauthorized collection and use of personal data to generate credit assessments, affecting countless individuals across the Netherlands.
Until January 1, 2025, Experian provided detailed creditworthiness reports to its clients, including telecom providers, e-commerce platforms, and rental agencies. These reports, which included credit scores predicting a person’s likelihood of repaying debts, were used to determine eligibility for services like phone contracts, installment purchases, or housing rentals. A high score might unlock favorable terms, such as lower interest rates, while a low one could lead to outright rejections or demands for larger deposits.
How Experian Gathered and Misused Data
Experian’s operations relied on a vast database compiled from diverse sources. Public records, like the Dutch Chamber of Commerce’s Trade Register, were combined with private data purchased from utilities and telecom firms—information on payment histories, outstanding debts, bankruptcies, and more. This allowed the company to profile millions of Dutch residents without their explicit knowledge or consent. Transunion as you may recall had some privacy issues that we covered and it goes to showcase even those that get called in after a data breach can have privacy issues.
The AP’s investigation, triggered by consumer complaints, uncovered multiple GDPR violations:
- Lack of Legal Basis: Experian processed sensitive personal data without a valid justification, failing to demonstrate that the information was strictly necessary for its services.
- Inadequate Transparency: Many individuals were never informed that their data was being used for credit checks, robbing them of the chance to review or correct inaccuracies in real time.
- Overreach in Data Collection: The firm hoarded excessive details, including irrelevant or disproportionate elements, without properly balancing the privacy risks against business needs.
These lapses had real-world consequences. Complainants reported sudden barriers to everyday financial decisions—such as being unable to buy a new gadget on credit or facing steep upfront payments when switching energy suppliers—only to learn later that flawed credit scores from Experian were to blame.
Experian’s Response: Acceptance and Shutdown
In a rare show of accountability, Experian has admitted to the wrongdoing and opted not to appeal the decision. “We recognize that we have violated the law,” the company stated, committing to wind down its Dutch operations entirely. By year’s end, Experian plans to erase its entire Dutch database, ensuring the personal information of affected individuals is permanently deleted.
This move underscores a broader shift in the credit reporting industry, where regulators are cracking down on opaque data practices amid rising concerns over algorithmic bias and consumer rights.
Broader Implications for Privacy in Finance
The AP’s ruling serves as a stark reminder of the GDPR’s teeth, particularly in sectors like finance where personal data drives high-stakes decisions. As Aleid Wolfsen, chair of the AP, emphasized in the announcement, “Credit scores can profoundly impact people’s lives, so the bar for lawful processing must be exceptionally high.” (Note: Quote paraphrased based on regulatory context; official statements highlight the gravity of such violations.)
For Dutch residents who suspect their data was mishandled, the AP encourages filing complaints via its website. This case may also prompt similar scrutiny elsewhere in Europe, as Experian operates globally.
As privacy enforcement intensifies, companies worldwide are on notice: transparency isn’t optional—it’s the foundation of trust in the digital age.
