The bank has sent a series of requests to the Government taking advantage of the prior public consultation that the Ministry of Economy, Commerce and Consumer Affairs opened to collect the opinion of the sector in the transposition of the new European directive on consumer credit, in such a way that the sector has asked that the maximum rates that the judges have already established for this type of products be respected.
For example, last year the Supreme Court already created a criterion by considering ‘usury’ a type of a ‘revolving’ card that is six percentage points above the average rate applied in Spain for that product.
In this way, the National Association of Financial Credit Establishments (Asnef) – which represents the financial companies of the main banks in Spain – has asked the Government to respect these maximum rates, since there is already a “peaceful” jurisprudence regarding regard. Other banking sources have indicated to Europa Press that rulings such as that of the Supreme Court have created a “very clear” consumer protection regulation.
Asnef has also asked the Executive for a common request for the sector, such as that the consumer loan business be reserved only to regulated entities that comply with the “necessary demands and requirements” to “guarantee” the security and protection of consumers, so that companies such as ‘fintechs’ that can provide consumer loans, but without supporting the same regulation, do not participate in the market.
“For these purposes, the regulated entities existing today, that is, financial credit establishments and credit institutions, are the appropriate legal figure to cover the indicated objectives, which allows compliance in free competition with the principle of ‘same activity’. ‘, same rules, same supervisor'”, the organization refers to questions from Europa Press.
In terms of solvency, the association has indicated that regulated entities have “responsible” lending policies, but believes that it is necessary, on the one hand, to progress in the use of the new tools that technology provides and, on the other, to provide of greater ease for the processing of data in the evaluation of solvency, thus preventing “what one standard requires from being denied by another”.
Regarding the marketing of credit-related insurance, the association maintains that payment protection insurance is “fundamental” to access credit for a portion of consumers who, otherwise, “could not access it.”
Finally, they have proposed that the categorization of the Bank of Spain’s statistics on the different credit products “be adapted to the reality of the existing market.” They ask that they be “truly representative” and provide “truthful and transparent” information, since “in many cases” published indicators are used for the mere purposes of monetary policy, but which, however, “are not appropriate references” for comparison of interest rates by consumers.
New figure of consumer credit lender
Asufin has been another of the associations that has participated in the prior public consultation that the Ministry of Economy closed on October 4. Among the allegations presented, he has requested that deferred debit cards not be excluded from the new regulatory package which, in addition to a law, also includes a royal decree and a ministerial order.
This product allows the amount not to be charged to the account immediately, but on another date, so the user does not have to have the funds at the time of making the purchase, but on the date established to pass the post. “Otherwise, their account will be overdrawn and they will have to pay high interest and fees to the bank,” explains Asufin, which can lead to “easy debt.”
Continuing with Asnef’s requests, Asufin has not requested a reservation of activity for supervised entities, but it has requested that the figure of consumer credit lender be created by which new actors in the system are under an “adequate” recognition procedure and mechanisms registration and supervision established by an independent competent authority.
Furthermore, among other issues, they believe that it is necessary to introduce measures to prevent possible abuses for consumers and ensure that “excessively high” consumer rates are avoided. Thus, they have asked that “percentage caps” be set that are considered excessive, mainly in green credits with the aim of “incentivizing” them.
New consumer credit law
As explained by the Ministry of Economy, Commerce and Business in the public consultation, the intention is to draft a new law on consumer credit contracts to transpose European Directive 2023/2225, which must come into force, “at the latest”, on the 20th. November 2025. A royal decree and a ministerial order will also be drafted that will modify the regulation of advertising of banking services and products, and the regulation of transparency and customer protection of banking services.
The reason for the new directive is that the previous one has been “only partially effective”, both due to the wording of certain articles and external factors, including changes resulting from digitalisation, practical application and compliance in Member States , as well as the existence of certain aspects of the consumer credit market that this directive does not contemplate.
Thus, the new directive that is to be transposed extends the scope of application to some contracts that had been excluded from the 2008 Directive, such as, for example, consumer credit contracts whose total credit amount is less than 200 euros and contracts rental or financial lease with purchase option.
In addition, ‘Buy Now, Pay Later’ systems – also known as ‘Buy Now, Pay Later’ – are included within the scope of application, under which the lender grants credit through new digital financial instruments that allow the consumer to make purchases and pay for them over time.
The regulations, which will apply to lenders and intermediaries who are subject to a prior registration and authorization procedure to be able to operate, except credit institutions, include specific provisions on the advertising of consumer loans to warn about the cost, which must be provided ” clearly and prominently.”
Finally, among other issues, it prohibits the granting of unsolicited credit and leaves it to Member States to introduce measures to prevent possible abuses, such as ensuring that “excessively high” borrowing rates, APRs or total costs cannot be imposed, such as maximum limits. .
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