Spain ushers in a new era for consumers: banks will no longer be able to issue credit cards or increase credit limits without a client’s explicit request and consent. This is not just another amendment—it’s a total ban on any form of financing not initiated by the individual. The new edition of the consumer credit law, approved by the government, aims to put an end to abuses and protect people from unexpected debt growth.
Now any loan offers not requested by the client will be illegal. Banks and financial institutions are required to obtain clear and unequivocal consent before issuing a card or increasing a limit. This applies not only to traditional banks but to all companies providing credit services, including digital platforms and quick loan providers.
Restrictions for Banks
Previously, banks often exploited loopholes to offer clients additional credit products, sometimes even without their knowledge. For example, credit cards might arrive by mail, or limits on existing cards could be increased automatically. Such actions will now be considered illegal. The only exception is the renewal of existing cards, but even then, customer consent is required.
The law specifically states that even if a bank offers so-called ‘pre-approved’ loans, they cannot be issued without the client’s confirmation. Advertising and offers are allowed, but there can be no automatic disbursement of funds. This rule also applies to the increasingly popular ‘buy now, pay later’ services, which often disguise loans as convenient installment plans.
Interest rate caps and tackling predatory lending
One of the key innovations is the introduction of strict limits on loan costs. This especially concerns credit cards, where the interest rates on so-called revolving cards have long raised concerns among regulators. Now, the maximum interest rate will be calculated based on the average rate for consumer loans published by the Bank of Spain, plus a certain percentage. For small amounts (up to €1,500), the markup will be 15%; for large loans (over €6,000), it will be 6%. As a result, with the current average rate at 7%, the maximum loan rate will not exceed 13–22% per annum.
A temporary cap has already been introduced for cards with a revolving limit—no higher than 22% per annum until the law takes full effect. This measure is intended to halt the runaway growth of debt, which often results from hidden fees and complicated terms attached to such products.
Company oversight and new requirements
All companies engaged in consumer lending will now come under the supervision of the Bank of Spain. This applies not only to traditional banks, but also to online platforms that until now operated with virtually no oversight. Even those offering installment payment loans for goods must operate through licensed financial institutions or refrain entirely from charging interest and fees.
Companies wishing to offer customers the option to pay for goods in installments now have just two choices: either partner with a bank, or provide installments free of charge. Otherwise, they face fines and a ban on operations.
Protection from online manipulation
Special attention is being paid to so-called ‘dark patterns’—deceptive tricks on websites and apps that nudge users toward unfavorable decisions. For example, when the ‘accept loan’ button is brightly colored and the ‘decline’ button barely visible. Or when pop-ups create a sense of urgency that pushes the customer to act without thinking.
Such practices will now be legally banned. Any attempt to manipulate users’ choices—especially when it comes to financial products—will be punishable. In addition, all online services must make the opt-out feature prominently visible and easily accessible—no more hidden links or tiny print.
Consumer rights and new standards
The law introduces additional measures to protect consumer rights. For instance, if a client accidentally overdraws their account, the bank cannot charge more than 2.5 times the refinancing rate on that overdraft, including all fees and penalties. This limitation is meant to shield people from unexpected debts and excessive interest charges.
The entire lending system is becoming more transparent: all offers, terms, and fees must be presented as clearly as possible. Banks and financial companies are required to inform clients about all risks and possible consequences so people can make well-informed decisions.
Overall, the new rules fundamentally change the philosophy of lending in Spain. Now, the initiative lies entirely with the client: only they decide if they need a loan, card, or credit increase. Banks can no longer impose their products, and any attempt to bypass the law will be strictly punished.
