The Unfairness of Personalized Credit Pricing

The ability of lenders to personalize prices of consumer credit products using personal data collected from the digital footprints of borrowers has been a topic of debate among regulators and legal scholars. One aspect of such price personalization is that a lender may set the price of the credit product (e.g. the interest rate) equal to the estimated willingness to pay of the borrower. Melvin examines whether and to which extent courts may limit personalized prices ex-post when applying the unfairness assessment under the Unfair Contract Terms Directive, together with the revised Consumer Credit Directive. To this end, Melvin analyses the case law of the Court of Justice of the European Union (CJEU), as well as the case law of the courts of the Netherlands and the United Kingdom.