The Spanish government has approved a draft law “On Consumer Credit” that radically changes the rules of the game between banks and clients. The key innovation: financial institutions will be prohibited from issuing credit cards or activating credit lines unless the client has explicitly requested them.
The new law regulates not only credit cards but also the overall cost of borrowing:
✅ Caps will be set on fees for going into a negative balance.
✅ Microloans and fast loans will now fall under strict supervision by the Bank of Spain.
✅ All digital platforms offering installment payments must now comply with the rules of the Bank of Spain. If a store offers its own financing to stimulate sales, it must do so through a regulated intermediary; otherwise, charging interest will be illegal.
The new law regulates not only credit cards but also the overall cost of borrowing:
✅ Caps will be set on fees for going into a negative balance.
✅ Microloans and fast loans will now fall under strict supervision by the Bank of Spain.
✅ All digital platforms offering installment payments must now comply with the rules of the Bank of Spain. If a store offers its own financing to stimulate sales, it must do so through a regulated intermediary; otherwise, charging interest will be illegal.
