The Government approves the draft bill and the draft royal decree on consumer credit agreements

On 7 January 2026, the Government approved the draft bill on consumer credit agreements and the proposal for a royal decree which partially implement Directives (EU) 2023/2225¹ and 2023/2673², on consumer credit agreements and on financial services contracts concluded at a distance, respectively.

The draft bill incorporates the obligations relating to distance financial contracts into the Spanish Consumer and User Protection Act³ and amends the legal framework applicable to financial credit establishments, creating a new category of limited-activity financial credit establishments.

The texts are being published late, since the implementation deadline of both directives already expired.

The draft bill is subject to a public consultation and hearing procedure until 30 January 2026.

It is also relevant to note that licensing requirements are also be established for mortgage credit lenders, under the Spanish implementation rules of Directive 2014/17/EU.

Below we outline the most relevant aspects of these documents insofar as they relate to the implementation of the consumer credit regime.

Scope

Personal scope

Once enacted, the law will apply to all lenders and credit intermediaries operating in the consumer credit market, regardless of their legal nature.

Material scope

It will apply to consumer credit agreements falling within the scope of the consumer credit directive.

However, pre-contractual information and advertising obligations will be less stringent for:

• credit agreements for amounts below EUR 200;
• agreements where the credit is granted interest-free and without any other charges; and
• agreements repayable within three months with limited costs.

Main developments

Limitation of the cost of credit

The draft bill:

• establishes a mandatory system of limits on the cost of credit, based on a maximum APR (TAE for its Spanish acronym) to be set by the Bank of Spain for each type of credit; and
• sets specific quantitative caps for certain higher-risk products and situations. For example, in the case of tacit overdrafts, the total cost of the credit may not exceed 2.5 times the statutory interest rate.

License requirement and creation of the category of high-cost lenders

The draft bill also provides for:

• the requirement that only licensed entities registered in the relevant registers professionally grant consumer credit; this requirement also applies to lenders operating in Spain under the freedom to provide services or through a branch, with proportional application;
• an exemption for SMEs and micro-enterprises granting credit on an ancillary basis to their main activity; and
• the introduction of a new category of high-cost lenders, which:

• • are operators granting consumer credit,
  • with high interest rates and costs,
  • typically involving small amounts and short maturities,
  • to consumers who do not have access to traditional credit, and
  • will be subject to enhanced transparency, licensing and registration (with the Bank of Spain) and supervisory obligations.

Staff training

The text also:

• sets out requirements regarding the knowledge and experience necessary for staff involved in the granting and marketing of loans; and
• assigns training responsibilities to entities, without yet defining the content or a minimum number of training hours.

Remuneration

The remuneration policies of lenders and credit intermediaries must be designed so as not to incentivise irresponsible lending practices or undermine consumer rights.

These policies must be approved by the management body, be known to staff (who must receive training on them), and be made available to the supervisor.

Non-discrimination

The draft bill provides that credit may neither be denied nor made more expensive for EU citizens on personal grounds such as nationality, age, sex, religion or any similar circumstance, while allowing different conditions where objectively justified.

Main operational impacts

Advertising and pre-contractual information

In this area, the draft bill:

• establishes a minimum content for basic information that must be provided;
• requires advertising and pre-contractual information to be adapted to the technical limitations of the medium used; and
• provides for more detailed pre-contractual information on the economic consequences of the credit and warnings regarding its risks.

Granting of credit and creditworthiness assessment

Credit granting must be based, beyond credit history, on a thorough creditworthiness assessment, supported by adequate and proportionate information in light of the risk, drawn from internal and external sources, and not from social networks or protected data.

Overdraft charges

The draft bill sets a cap of EUR 15.00 for the recovery of limited unpaid balances, an amount that may be amended by regulation.

Tied and bundled sales

As a general rule, the draft bill prohibits tied sales, unless the credit agreement is of a financial nature and cannot be offered separately, provided that such practices do not distort consumer choice and that harmful clauses are null and void.

In addition, it prohibits maintenance or administration fees.

Transitional regime and entry into force

The transitional regime provides temporary rules to allow operators already active in the market to adapt in an orderly manner to the new framework without having to cease their activity.

It also caps the interest rates applicable to existing and open-ended credit agreements, which may not exceed 22% from the date the law enters into force. As an exception, the lender may terminate the credit at that time, provided that the consumer is allowed to repay the outstanding amount under the previous terms and interest rate.

The draft bill provides that the law will enter into force 20 days after its publication in the Official State Gazette, with staggered application of certain obligations, including:

• those relating to the activity regime and cost caps for high-cost lenders, which will apply three months after publication; and
• the conduct-of-business rules applicable to such lenders and the obligation for certain lenders to operate through registered intermediaries, which will apply 12 months after publication.