S.L. 378.10 Art. 10Creditworthiness assessment.

(1) Where the assessment of the consumer’s creditworthiness results in a negative prospect for his ability to repay the credit over the lifetime of the credit agreement, the creditor shall refuse to provide such credit.

(2) Where the application for credit is rejected, the creditor shall inform the consumer without delay and free of charge of the rejection, of the reasons for rejection and, where applicable, that the decision is based on automated processing of data.

(3) Where the rejection of an application for credit is based on the result of the database consultation, the creditor shall inform the consumer without delay and free of charge of the result of such consultation and of the particulars of the database consulted, including the name of the database that was consulted as well as of its controller and of the consumer’s right to access and, where necessary, his right to rectify his data in that database: Provided that the creditor shall not be required to give such information if the information to be provided is prohibited by any other law, or is contrary to the public policy or public security of Malta.

(4) Where the application is rejected on the basis of an automated decision or a decision based on methods such as automated credit scoring, the creditor shall inform the consumer without delay and free of charge.

(5) The creditor shall explain the logic involved in the automated decision to the consumer.

(6) The consumer shall have the opportunity to request for the decision to be reviewed manually.

(7) This regulation shall be without prejudice to the Data Protection Directive.