Overview of the proposed Financial Client Defense Authority
The parliamentary groups involved in shaping the creation of the new Financial Client Defense Authority agreed on Tuesday to impose sanctions on banks, insurers, brokerage firms, and other financial companies that submit more counterclaims than the entity considers reasonable. The government, led by PSOE in coordination with the Ministry of Economy, championed an agreement intended to drive change and ensure that the state contributes to the project so that these organizations bear a fairer share of the financing for the new body. The aim is to position the authority as a credible, independent body that can safeguard client interests across the financial sector.
The initiative proposes a reform that includes a revised funding model. A 250 euro rate would be charged per accepted claim to fund the new entitlement, but individuals affected will not be required to engage with the organization free of charge. Approximately 40 percent of the institution’s operating costs would be distributed in proportion to the number of claims resolved by each financial institution, based on the total claims resolved. The remaining 60 percent would be allocated in proportion to the total number of favorable rulings for the plaintiffs. The plan also includes estimates of the institution’s annual gross income, which will be settled definitively in April of the following year after finalizing the organization’s actual expenses.
Another key element of the project involves increasing access to the courts. Under the government’s proposal, organizations and customers would have the ability to appeal decisions through the institution or through contentious-administrative channels before the national audience when binding or by civil means in non-binding cases. Questions were raised about legal reserves and the appropriate pathways. The General Assembly for the Judiciary and the Financial Council are expected to provide civil remedies through a streamlined, primarily written procedure.
20,000 left
The reforms also include improvements to basic payment account regulations to ensure that institutions are obligated to offer these accounts to vulnerable groups, such as non-resident immigrants. With only minor last-minute changes anticipated, the amount that the new authority’s decisions can bind on organizations appears unlikely to drop below the 20,000 euro level, which would cover roughly 95 percent of claims. Ongoing discussions in recent weeks have explored ways to reduce this threshold further.
The economic committee of the lower house is scheduled to reconvene on Thursday to discuss and vote on the latest changes that give the project a green light in principle. The plan calls for a general assembly in Congress next week, followed by a Senate review. If amendments are approved in Senate, the text would return to Congress for final approval. The Ministry of Economy remains confident that final authorization for the creation of the institution will be granted before the summer.
Controversial rate
Economics vice president Nadia Calviño has already begun adjusting interest rate considerations since early March, which has raised questions about compliance with public rate policies and the price law of 1989. Opinions from various quarters, including the Bank of Spain, the General Council of the Judiciary, and financial employers, have expressed concerns about a flat 250 euro charge per accepted claim since April of the previous year. Critics argue this flat rate may distort behavior by encouraging many small claims, since it is cheaper for some entities to accept a claim below the threshold.
The opposition coalition recently joined forces to press for a reduction in this rate. Parties including PP, PNV, Cs, Junts, and PdeCat have proposed lowering it to between 100 and 50 euros and have suggested alternate formulas depending on the situation. They also explored the possibility that organizations might not bear all or part of the fee if the new institution sides with them and rules against the customer. PSOE and United We Can did not initially present specific counterproposals, opting instead to withhold their positions while negotiations continued.
Overall, the discussion reflects a broader effort to balance the burden of funding the new authority with the need to protect consumer rights in financial services. The outcome remains contingent on ongoing parliamentary negotiations and a final decision that must align with national economic considerations and consumer protection goals.