The Government has launched an ambitious change in consumer credit rules which will significantly affect how banks and customers interact with credit cards. The new regulatory framework aims to tackle widespread practices in the financial sector, such as the issuance of unsolicited cards or the automatic increase of credit limits, which have contributed to the silent over-indebtedness of many households in Spain.
The core of the reform is clear: Any granting of credit without a prior request and express consent from the consumer is prohibited.This means that entities will no longer be able to activate new credit cards or increase available financing capacity without the customer having consciously and verifiably requested it, leaving behind years in which these decisions were often made unilaterally from the branch or the bank's internal systems.
A new Consumer Credit Contracts Law focused on consent
The Council of Ministers has approved a draft bill on Consumer Credit Contracts Promoted by the Ministry of Economy, currently led by Carlos Cuerpo. This text It prohibits banks, savings banks and other lenders from issuing credit cards or increasing their limits if the customer has not expressly requested it.The wording is unequivocal: any granting of credit to consumers who have not previously requested it and without their express consent it is prohibited.
With this measure, the Executive intends close the door to the unilateral granting of financing which had been used as a marketing tool. For years, it has been common for banks to send new cards as part of banking packages, activate credit lines associated with promotions, or increase card limits to coincide with specific campaigns, often without the cardholder being fully aware of the change in their financial conditions.
The future law, however, clarifies that Offering pre-approved credit is not prohibitedBanks can continue to advertise financing, show potential limits, or send commercial proposals, but the key is that They will not be able to activate that credit if the consumer does not explicitly accept it.The goal is to clearly differentiate between advertising a product and the actual incurrence of debt.
At the moment, the text is in the phase of blueprintThat means it still has to go through several steps: public consultation, approval as a bill, debate and voting in Parliament, and finally its publication in the Official State Gazette (BOE)Until that process is completed, the rule will not be fully applicable, and for now There is no fixed timetable for its entry into forcealthough the Government's intention is to move quickly.
End to automatic card issuance and limit increases without notice
One of the most visible changes for the user will be the End of credit cards being sent to the mailbox without being requested or activated by default when opening an account or service package. Until now, it was relatively common for customers to receive a credit card already linked to a line of credit, or to see their available credit limit increased, when opening an account or signing up for a promotion, without having signed anything specific.
The new regulations put an end to these practices. The entities They will not be able to issue new credit cards unless there is a direct request from the consumer.nor will they be able to increase the limit on your cards already existing automatically. Any relevant changes to the credit terms must be communicated and, above all, expressly and verifiably approved by the holderTherefore, the "promotional" limit increases during periods such as Christmas or summer without clear customer acceptance are over.
This requirement for consent also extends to the financing lines linked to commercial packages or loyalty incentivesOffers will still be possible, but they cannot be converted into active credit without the consumer's approval. In other words, financing is no longer something that comes "by default" and becomes a... a decision that the user must make consciously.
Consumer associations welcome this step, understanding that it contributes More control and fewer surprises in credit managementFrom the banking side, it is acknowledged that it will be necessary to adapt internal procedures, computer systems and customer relationship channels in order to properly document each consent.
Revolving credit cards, overdrafts and quick loans under a new umbrella
The draft bill is not limited to traditional cards, but rather reorganizes consumer finance from top to bottomThe regulation transposes two European directives and covers personal loans, microloans, installment payments, quick loans and the increasingly prevalent schemes of buy now, pay later (buy now, pay later), very popular in e-commerce and among younger consumers.
One of the most sensitive points of the text has to do with the revolving cardsa product that allows you to defer payment for purchases but which, in practice, has become associated with very high interest rates and debts that drag on foreverIn recent years, numerous courts have struck down contracts for considering their interest rates to be usurious, especially in cases affecting vulnerable people or those with less financial literacy.
To correct this situation, the future law It introduces limits on the cost of money in products such as revolving credit cards. and sets limits on the cost of bank overdrafts when an account goes into the red. The... transparency obligations in pre-contractual and contractual informationso that the customer can understand in advance how much the financing will actually cost.
Furthermore, the Bank of Spain supervision of all companies that grant consumer creditnot just traditional banking. This includes digital financing platforms, businesses offering deferred payment, and quick credit providersThe idea is that any company that provides financing must respect the same basic standards of clarity, creditworthiness assessment, and protection against over-indebtedness.
In this context, the models of buy now, pay later They also fall under regulatory scrutiny. Although often presented as a convenient way to split purchases without interest, authorities warn that The accumulation of several deferred payments can generate financial stressespecially among young people who do not always have a global view of all their payment obligations.
Greater transparency, solvency assessment and accountability in the awarding of concessions
Another key aspect of the reform is the transparency in the information provided to the consumer before and during the life of the contractLoans, cards and other credit products must clearly and comprehensibly detail elements such as the Annual Percentage Rate (APR), the total cost of credit, applicable fees, duration, payment schedule and the consequences of non-payment or late payment.
That information must be submitted with enough time for the customer to compare and reflectInstead of being pressured to decide the moment the product is offered, consumers tend to rush into decisions, especially through digital channels or physical retail outlets. Hasty contracting, particularly through digital channels or physical points of sale, has been a contributing factor to poorly considered financing choices.
Along with transparency, the following is reinforced: obligation to rigorously assess the applicant's solvencyFinancial institutions will have to rely on up-to-date and sufficient data on income, expenses, and other debts to determine whether a person can take on credit without jeopardizing their financial stability. The intention is to prevent loans or credit cards from being granted to customers without a genuine ability to repay.
This particularly affects products with quick or near-instant approval, where creditworthiness analysis could previously be more superficial. With the new framework, The idea of responsible lending prevailsBefore saying “yes” to a transaction, the entity must ensure that the consumer understands what they are signing and can handle it without falling into a spiral of debt.
The economic authorities themselves emphasize that this combination of express consent, clear information and well-analyzed solvency It is the basis for curbing over-indebtedness, at a time when consumer finance has gained weight in the budget of many families.
Bank-customer relationship: more control for the user, new challenges for the institutions
In practice, the application of the new law will mean that consumers They gain room to maneuver regarding their own debt.Those who already have a credit card will not see automatic changes to their limit: any increase must be accepted, either by signing a document, validation from the banking application, or a clear confirmation through electronic channels that is recorded.
If a person receives a card they did not order, or discovers that their limit has been increased without their consent, You may demand cancellation without penalty and file a claimIn case of conflict, the client will also have the option of going to the Bank of Spain or other dispute resolution mechanisms, protected by a rule that recognizes clearer rights.
For financial institutions, the change implies Review your business processes and consent recording systemsIn the event of a dispute, it will be essential to be able to demonstrate that the customer expressly accepted the card, the credit limit, or the financing offered. This will affect traditional banks, online platforms, and businesses that use their own or third-party financing to boost sales.
At the same time, the sector will need to adapt to an environment in which the Pre-approved credit loses some of its prominenceAccess to financing will still be possible, but consumers will become more active participants, needing to take the initiative to request it. This may mean less tendency to take on debt "out of habit," in exchange for greater awareness of financial decisions.
Taken together, the reform paints a picture in which Consumer protection is gaining importance without preventing the existence of credit offerings.Credit cards, personal loans, and new digital solutions will continue to be part of everyday life, but under rules in which informed consent, transparency, and responsible creditworthiness analysis become mandatory pieces of the financial puzzle.
This new legal framework aims to ensure that citizens maintain access to useful tools for planning their expenses or dealing with unforeseen events, while preventing a repeat of the excesses of the past, where the ease of obtaining credit and the lack of clear information led to... debt situations that many clients took years to overcome.