“I have been paying a fee of 105 euros since 2014, for a loan of 3,300 euros (…) and they still tell me that I have 45 installments left.” “Very easy to contract, yes, but they make surcharges that they shouldn’t.” “Be careful how you fall behind on any installmentcall your parents, friends or neighbors to complain.” “Bad experience. They charge you twice the monthly payment and you have to wait 15 days for them to pay you.”
These are just some of the reviews that we can find on Google published by users about their experiences with different companies that offer consumer credits, which are those that allow the consumer the possibility of financing a certain service or the purchase of a good in exchange for subsequently returning the amount lent within a specified period along with the agreed interest. The amount of these credits It usually ranges between 200 and 75,000 euros.
To try to prevent situations of deception from occurring and prevent consumer over-indebtednessAmong other issues, last year the European Union approved the Directive 2023/2225/EC relating to consumer credit contracts, which must be applied in Spain in November 2026.
The general director of the Public Treasury, Carla Díaz Álvarez de Toledoan organization belonging to the Ministry of Economy, has recently confirmed that the Executive is working on the transposition of the directive that includes the obligation to register all entities that offer consumer credit, obligations regarding advertising and solvency assessment to prevent excessive indebtedness, the prohibition of approving unsolicited credit or the introduction of measures to avoid excessive interest ratesamong others.
In Spain, consumer loans are fundamentally grouped into three categories: personal loans, quick credit and line of credit. But it is quick credit which has generated the most controversy in the last times. These loans, in general terms, have high interest and are granted almost automatically, even via on-line or telephone, without a risk or solvency analysis, which leads many people to over-indebtedness.
Financial user organizations, like Asufin or Adicae, have warned that “the danger of these products emerges with non-payment, something very common in the measure is that they are often granted without due study of the client’s solvency.” These types of credits, they emphasize, “push the consumer into a spiral of over-indebtedness which is very difficult to get out of.”
Under the magnifying glass of the Ombudsman
Also the Ombudsman, Angel Gabilondoafter receiving complaints from several citizens warning of possible abuses, announced that it would investigate ex officio, together with the Bank of Spain and the Ministry of Economy, the level of protection offered to consumers by fast credit granting entities and, in particular, the high interests and short terms imposed for the return of amounts lent
For the Ombudsman, two factors justify his intervention. On the one hand, the companies that grant this type of loans They are often not considered credit institutions. On the other hand, this product usually targets a type of vulnerable consumer who is going through difficult circumstances. Another aspect that draws attention to this institution is the absence of negotiation with the lenderunlike what happens with conventional entities, in which refinancing mechanisms are usually established in the event of default.
Without supervision of the Bank of Spain
Likewise the Bank of Spain He has referred in his blog to this type of credit. This body, in charge of supervising the Spanish banking system, remembers that the majority of companies that grant this type of financing escape its control because “it is not an activity reserved only for financial entities”.
In his opinion, the loans are executed “with almost no documentation required from the person requesting it” and that, in many cases, “they do not even have the necessary resources or guarantees to access the financing offered by financial institutions and are forced to resort to these products.”
“Before taking out a quick loan, it is important to make sure what the amount we are really going to have will be, the installment we are going to pay and, above all, be aware of the price at which they are lending us the money“he recommends.
Main novelties that the new law will introduce
-Clear and understandable credit information. The standard will ensure that credit information, such as the total cost of credit to the consumer, is presented in a clear and understandable way and is adapted to digital devices.
-Registration obligation. The entities or intermediaries that provide or offer these credit services must be registered as credit granting entities in an official registry that allows their supervision by the competent authority if necessary.
-Stricter rules for advertising. The new law will establish stricter advertising rules in order to reduce abusive credit to over-indebted consumers, and create effective measures against cost overruns.
-Preliminary evaluation of the potential client. Lending companies will have to carefully evaluate whether consumers can repay their credit, so that they are protected against excessive debt.
-Supervision of loans less than 200 euros. With the new regulations, loans of less than 200 euros – now exempt – and products purchased through the ‘buy now, pay later’ formula will also be subject to supervision.
-14 day period to terminate the contract. The rule will grant consumers a right of withdrawal for a period of 14 days, as well as the right to be forgotten for people who have overcome cancer.
