Following a surge of more than a hundred claims drafted last April, the state introduced changes to the eagerly awaited plan to create an Independent Governing Authority for the Defense of Financial Clients. The aim is to overhaul the Spanish approach to resolving consumer financial disputes. The plan centers on consumers first, covering banks, investment firms, insurers, and other financial assets. Far from softening the initiative as claimed by the affected groups, the executive chose to widen its reach and empower the new authority. According to El Periódico de Catalunya, a publication from the same press group, the forerunner to the new body is much more extensive than what that newspaper alone reported. [Source: El Periódico de Catalunya]
Under the proposed framework, the new authority would handle complaints that have so far gone to the National Securities Market Commission (CNMV) and the General Directorate of Insurance and Pension Funds within the Ministry of Economy. Its decisions would be binding when the amount requested against organizations (not customers) does not exceed 20,000 euros. This marks a shift in materiality, as the views of the three industry auditors would no longer be mandatory, often ignored by entities at high rates. The economic sector also set a fee schedule of 250 euros per request, with the service remaining free for customers. [Source: Ministry of Economy]
Led by Nadia Calviño, the department opted to retain the core elements of the April draft but proceeded with changes after receiving feedback from business associations, consumer groups, and NGOs among other stakeholders. The main participants, AEB representing traditional banks and MINT representing former savings banks, had warned that the project was unconstitutional and urged the government to lower the binding threshold to 5,000 euros. They also pressed to reduce the rate and to ensure that both assets and customers who file complaints are treated fairly. [Source: Ministry of Economy]
help with mortgage
Despite the pushback, the government pressed ahead, prioritizing customer interests. A key feature is the creation of self-regulation codes for the financial sector, designed to be adopted as best practices. This means banks and other financial bodies that join these codes would be expected to comply with their commitments, and customers could request enforcement. [Source: Ministry of Economy]
One of the most notable codes pertains to mortgages, established with signatures from 87 financial entities. The document commits to helping clients who struggle to pay their mortgages, including measures such as debt restructuring, charge-offs, and setting payment dates. Vice President Calviño has repeatedly referred to these issues in recent weeks amid concerns about families facing wage constraints and the sharp rise of the Euribor rate. Economics and banking officials are also examining whether further measures may be necessary. [Source: Ministry of Economy]
More assets and problems
The government also chose to expand the range of assets that can be the subject of consumer claims. The new scope would include consumer lenders regardless of whether they are supervised by the Bank of Spain or regional consumer authorities. It would broaden the types of claims, for example covering lack of knowledge or refusal to open a basic payment account (with certain exceptions for high-value cases) and specify violations of good practice codes. [Source: Ministry of Economy]
To speed up conflict resolution, parties would submit to a conciliation mechanism even if a claim has already been filed with the competent authority. The Economy ministry also decided to drop a mandatory form that supported access to the new authority for the elderly, disabled, and other vulnerable groups. [Source: Ministry of Economy]
The plan would allow multiple formats for filing claims, including face-to-face meetings, telephone, and telematics channels for the help service. It also set a maximum fine reduced from 1,000 euros to 500 euros for customers who repeatedly submit manifestly false and unacceptable claims within six months. [Source: Ministry of Economy]
The government has already requested reports from the Economic and Social Council and the General Assembly of the Judiciary, in addition to consultation with the State Council. The objective is to have this regulation approved by the Assembly in the fall and to launch the new authority in 2023. [Source: Ministry of Economy]