For years, many users have found themselves in the mailbox credit cards they never applied for, automatic limit increases or lines of credit activated almost without realizing it. This way of operating, widespread in the sector, has boosted easy credit, but has also left thousands of households trapped in unmanageable debt.
With the new draft bill on Consumer Credit Contracts Driven by the Spanish Government, this scenario takes a significant turn: financial institutions They will no longer be able to issue credit cards or increase the available credit limit. if the customer does not clearly request it and does not give their express and prior consent. The objective is to strengthen consumer protection and eradicate practices that fueled over-indebtedness.
End unsolicited credit cards and limit increases
The legal text states categorically that Any granting of consumer credit that has not been previously requested by the customer is prohibited. and explicitly accepted. This includes both the issuance of new credit cards and any unilateral increase of the limit on cards already contracted.
Until now, it was common for banks included cards in account or service packagesOr they might launch internal campaigns that raised spending limits during peak spending periods, such as summer or Christmas. Often, consumers only became aware of the change when they checked their statement or tried to make a larger purchase.
With the new regulation, that practice is now prohibited: No new cards, no additional credit lines, and no limit increases. These rights may be activated if the data subject has not provided verifiable authorization. Consent must be recorded—either in writing, through a digital signature, or via channels that allow for proof of acceptance—so that the entity can demonstrate that it has acted in accordance with the law.
It is worth emphasizing that the prohibition goes beyond what was already covered by the Payment Services Act, which focused on not sending unsolicited payment instruments except in cases of renewal. Now the focus is on the credit associated with the cardclosing any possibility of debt being generated without a conscious decision by the user.
Commercial offers yes, automatic activations no
The new regulation does not prevent banks from continuing to do this financing offersEntities may continue to send pre-authorized card proposals, loan simulations, or messages within the banking app, but Those offers cannot be converted into actual credit without an additional step.: the clear and unequivocal acceptance of the client.
The Ministry of Economy has emphasized this point: Commercial activity is not prohibitedWhat is being prohibited is the automatic activation of products that involve debt. In practice, the bank can still say "you have up to X euros pre-approved," but it cannot make that money available to the consumer until they confirm they want to take it out.
For the user, this means regaining control over their credit exposure. Silent credit limit increases and lines of credit that "appear" associated with a card or financed purchase without an explicit request disappear. Any new loan should be a well-considered decision. and not the result of a checked box or an aggressive promotion.
Consequently, entities are forced to review their internal processes: they will have to adapt their procurement systems, strengthen consent verification mechanisms, and thoroughly document customer acceptanceThis also has legal implications in case of conflict.
New framework for consumer finance and “buy now, pay later”
The draft bill is not limited to credit cards. The future Consumer Credit Contracts Law transposes two European directives and extends the scope of regulation to a wide range of products: personal loans, microloans, payday loans, installment payments, and even formulas for buy now, pay later (BNPL), increasingly common in e-commerce.
This means that any company that finances installment purchases —whether a traditional bank, a digital platform, or a business offering payment plans— will have to comply with the new regulations if it wants to charge interest. In cases, companies that are not regulated financial entities They will have to channel that financing through intermediaries supervised by the Bank of Spain or waive the right to charge interest.
The government's intention is to prevent the consolidation of a credit "underworld" outside of standard controls. The rise of BNPL solutions, which allow payment in installments with just a few clicks, has raised concerns among European regulators due to the silent debt riskespecially among younger consumers.
By bringing these products under the umbrella of the law, the customer is required to receive clear information on costsdeadlines and consequences of non-payment before accepting. Responsible lending criteria are also strengthened, so that the lender has to assess the consumer's actual ability to pay and not simply approve credit almost automatically.
Limits on the cost of money and control of revolving credit cards
One of the most sensitive areas of the reform is that relating to cost of money in consumer creditThe law introduces explicit limits on the interest rate Certain charges are already associated with these types of cards. Furthermore, limits are being placed on the cost of bank overdrafts, and transparency obligations are being strengthened: financial institutions will have to provide realistic simulations of how long it will take the consumer to pay off the debt and how much they will pay in total if they choose different payment methods.
These cards function like a line of credit that renews automatically, and the customer typically pays a fixed monthly fee. In practice, the interest rates applied can be so high that the debt continues for years and increases. delinquencyeven if the user has been paying bills for some time, which makes them a high-risk product for those with less financial knowledge.
With the new regulation, the following are established: explicit limits on the interest rate Certain charges are already associated with these types of cards. Furthermore, limits are being placed on the cost of bank overdrafts, and transparency obligations are being strengthened: financial institutions will have to provide realistic simulations of how long it will take the consumer to pay off the debt and how much they will pay in total if they choose different payment methods.
The goal is for the customer to be able to compare, understand and assess the real impact of credit before signing. To this end, the law requires that the information be presented in a simple and understandable way, moving away from the fine print that has traditionally accompanied these products.
This increased transparency comes in a context where the courts have already declared numerous revolving credit card contracts null and void due to usurious interest rates. The new framework aims to anticipate future conflicts and to prevent the judicial route from being the only way to correct abuses.
Strengthened role of the Bank of Spain and supervision of new entities
Another relevant novelty is the expansion of the supervisory perimeter of the Bank of SpainThe agency will monitor not only the actions of traditional banks and financial institutions, but also those of companies and platforms that grant consumer credit, including digital ones that operate exclusively online.
In this way, an attempt is made to reduce the space for business models that offered financing without exhaustive control. Alternative credit providersCompanies such as some fintechs or businesses that financed purchases directly will have to adapt to the requirements regarding information, solvency assessment and risk management.
The regulation also requires companies that want to boost sales through consumer financing Use regulated financial intermediaries if you wish to apply interest ratesIf they do not, they can continue to offer deferred payments, but without charging a price for the credit, which limits the profitability of this type of service and reduces the incentive to aggressively promote debt.
In addition, customer complaint channels are being strengthened: if a loan is granted or a limit is increased without consentThe user can contact the bank's customer service department and, if they do not receive a satisfactory response, escalate the complaint to the Bank of Spain, which will have more tools to sanction irregular conduct.
Impact on consumers: more control and fewer surprises
For the average citizen, the main consequence of this reform is easy to summarize: no bank will be able to increase its borrowing capacity without itNo cards arriving at home without explanation, no limits skyrocketing with every marketing campaign, and no credits associated with a purchase that aren't crystal clear.
From the date the law comes into force, if an entity wants to offer a new card or an increased credit limit, it will have to request express authorizationThis can be done through the app, in writing, with a digital signature, or via a telephone call with a recording saved. Without this step, the transaction cannot be completed.
This change also benefits the consumer more arguments when making a claimIf you receive an unsolicited credit card, you can request its immediate cancellation free of charge and report the issue to the relevant authorities. If you notice that your credit limit has been increased without your consent, you can request a refund and a review of the associated credit terms.
At the same time, the reform fits in with efforts to improve the financial education of the population. By requiring the customer to make a conscious decision when taking out a loan, greater reflection is encouraged on the advisability of going into debt, the impact of interest, and payment planning.
The result is an environment in which consumer credit remains an available tool, but in which The initiative lies with the user and not with the entity's commercial strategy.For many households, this can make the difference between using the card as a one-off support or turning it into the gateway to chronic debt.
This entire package of measures creates a new scenario in which Spanish and European banks will have to adapt their practices Consumer credit is moving towards a more demanding standard of transparency and accountability, while consumers gain more leeway to decide what level of credit they take on and under what conditions. Consumer credit isn't disappearing, but it's no longer something that "appears" almost without warning, but rather a product that requires a deliberate and well-informed decision from each customer.
