The relationship between banks and their customers regarding financing is about to undergo a significant change. The government has promoted a legal reform that prevents financial institutions from increasing credit card limits or activating new lines of credit without the cardholder's explicit request. This measure, included in the draft Consumer Credit Law, aims to curb over-indebtedness and give consumers more control over their spending.
Until now, it was common practice for banks to unilaterally increase their customers' available credit, presenting it as a commercial advantage. Under the new regulations, any increase in borrowing capacity will require a prior request and explicit consent , with no shortcuts or automatic activations. The reform also introduces limits on the cost of certain products, such as revolving credit cards, and extends the Bank of Spain's oversight to the entire consumer credit ecosystem.
What changes with the new regulation
The draft bill, approved by the Council of Ministers on January 7, 2026, establishes in Article 63 that granting credit to consumers without their prior request and express consent is prohibited. This applies to credit cards issued without express consent, as well as lines of credit, overdrafts, and any other form of consumer financing. The law requires that consent be an affirmative, free, specific, informed, and unambiguous act, such that it cannot be presumed through silence, inaction, or pre-ticked boxes.
In practice, banks will no longer be able to increase a card's credit limit, activate a new financing option linked to an existing product, or offer an additional loan that the user hasn't requested. The sales offer won't disappear , but the loan will only be granted once the customer confirms they want to use it. Thus, a financial institution can continue advertising pre-approved loans or available cards, but activation will be contingent upon the consumer's explicit consent.
Limits on the cost of credit and revolving credit cards
The reform is not limited to how credit is offered, but also extends to pricing. A temporary cap of 22% APR is set for new consumer credit transactions, which will also apply to the repayment of existing revolving credit cards, until the Bank of Spain publishes the final thresholds based on loan amounts. Overdrafts will also be prohibited from generating interest and fees that raise the APR above 2,5 times the legal interest rate.
For high-cost loans, such as microloans and digital payday loans, stricter conditions are established: a maximum monthly interest rate of 4%, a maximum commission of 5% with a cap of €30 , and a minimum repayment period of three months. Furthermore, the "buy now, pay later" (BNPL) model is included for the first time within consumer credit protection, representing a significant change for platforms offering this type of financing.
Expanded supervision and obligations for businesses
The Bank of Spain is taking a more active role in overseeing the sector. All entities that grant consumer credit, including digital platforms, must be authorized and supervised by the regulator. Contracts signed with unauthorized lenders will be null and void, providing additional protection for consumers. This measure responds to the rise of technology and financial companies offering credit cards without income verification via the internet or mobile applications, which until now operated in a gray area.
The law also introduces obligations for businesses. If a company wants to offer its customers the option of paying for a purchase in installments with interest, it must do so through an authorized financial institution or a regulated intermediary . Otherwise, it can only offer interest-free payment plans. This change aims to prevent business practices that conceal credit transactions outside of official oversight.
The new consumer credit regulations represent a turning point in the relationship between banks and customers. With the prohibition of increasing credit card limits without consent, the establishment of caps on the cost of products such as revolving credit, and the expansion of supervision to the entire financial ecosystem, the government aims to reduce over-indebtedness and empower consumers. Although the measure is still being processed and has not yet come into effect, its final approval will mark a shift in the way credit is granted in Spain.
