decision Ombudsman since last thursday ex officio performance Before the Bank of Spain and the Ministry of Economy “know the degree of protection” of its consumers micro loans or quick loans once again discussed the difficulties it created. absence from someone legislation specific to this type of financing. Most of the institutions that provide credit, Bank of Spain because they are also dedicated to taking deposits. But there are many others who are not under their supervision because they can’t save money and they are exactly the people to whom people in the most difficult situations turn.
High interest rates and short repayment periods encourage the Ombudsman to take ex officio action before the Bank of Spain and the Government.
As the Bank of Spain explains, quick loans are loans of small amounts.Between 50 and 10,000 euros– those given immediately (for internet, phone or even in person at shopping malls), with almost no need documentation In many cases the applicant doesn’t have the resources or guarantees required to access the financing offered traditional banks. Many facilities at the time of grant (urgency, few procedures and little financial demand) come at a cost: they must be refunded In a very short timeto a species high interest and high commissions.
The Ombudsman emphasized that there were no specific regulations. “discipline your actions”beyond self regulation companies can implement a wide range of court decisions Those who decide in favor of consumers”, protection standards of consumers and users or those provided for in the Civil Code and the Commercial Code. For this reason, the institution led by Ángel Gabilondo Bank of Spain And Ministry of Economy if they are running “some kind of performance” about these organizations or who have published them “some instructions” Within the scope of the Law on Management, Supervision and Solvency of Credit Institutions dated 2014.
European legislation
Spanish Microcredit Association (AEMIP) – founded in 2013, whose 11 companies claim to represent around 80% of the volume of microloans granted annually in Spain. denial What lack of control Although there is no specific standard. “Although companies offering microcredit not inspected It is clear that they are managed by the Bank of Spain. wide range of standards The organization defended the claim “protecting the consumer”, citing, among others, the 2007 consumer protection law, the 2007 law on remote marketing of financial services and the 2011 law on consumer credit contracts.
However, the association regrets this Spain To be one of the “biggest” countries in Europe those left behind are regularly detailed Microcredits”. Therefore, a “historic opportunity” with a new approval community consumer credit directiveRegulation that EU States must include in their legal systems before 20 November 2025 and start implementing by 20 November 2026 at the latest. transfer to government and Congress “whether they recognize it or not” strangeness“microcredits” may result more protection We assume that consumers or in practice: end of an edited option accessible to Spanish citizens today”.
Therefore the association will recommend: amount What the directive offers prevent abuse and cannot be charged extreme odds In Spain, regulations are made depending on each type of loan. “Formula April (interest rate plus annual fees) provides: major distortions For items that need to be returned in less than 12 months insufficient As a reference indicator to determine the maximum interest micro credit” he argues. Another important point where the organization demands different treatment is solvency assessment Your customers. “Although the Directive does not make a clear distinction between types or quantities of products for solvency review, it establishes that the assessment will be: proportional “It depends on the nature, duration, value and risks of the loan requested,” he argues.
Complaints and requests
In every situation, Ombudsman He argued that he “decided to take action after receiving it.” citizen complaints for high interest and for short deadlines For the repayment of microloans”. He says that such loans are often used by “people who are going through difficult economic situations, or even hopeless“and to whom are the loans given?”Without risk analysis or ability to pay drives many people into a situation excessive debt“.
For your part, Spanish Consumer Association (Asescon) “research, although positive, arrive late“So he criticized the high level. children interesting, “in some cases greater than 25%“;”requested to be clearly regulated” pre-contract information What the consumer should receive, because through inquiries and complaints this is oftenminimal and partial”; and also requested “special protection for the contracting parties”. disability or any problems sanity”, as a result of “certain hirings that have occurred.”
Recommendations of the Bank of Spain
Bank of Spain is coming Warn periodically and over a period of years about the risks involved in contracting with one of these loans. The supervisory authority recommends comparing the conditions with other similar offers; Have a good knowledge of APR (use this simulator to make calculations; make sure you read and understand the terms of the contract (such as term and interest rate) before confirming; and planning finances To prevent possible defaults or excessive borrowing. To check whether an organization is subject to the supervision of the Bank of Spain, you can consult the organization registry.
Source: Informacion
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