Consumer credit has stopped being reserved for big-ticket purchases. Today, people finance everyday spending too, from essential goods to everyday services, and that shift has turned credit into a routine payment method for a large share of the population.
This growth is forcing both traditional lenders and financing platforms to rework their processes at the speed the fintech ecosystem now demands.
In Spain, that shift is being met with a new consumer credit contract law: the draft bill on consumer credit agreements published earlier this year. It’s not final yet; it still has to clear several legislative stages before entering into force, but it already outlines the roadmap for how consumer lending will need to be managed and documented going forward.
Although this consumer credit contract law is Spanish legislation, it transposes an EU-wide directive, so the direction of travel matters well beyond Spain’s borders: any lender, fintech, or financing platform operating across the EU/EEA, or planning to enter the Spanish market, will be dealing with an equivalent framework in due time. This article breaks down what the draft law will require, and how you can start reviewing your digital processes before it’s formally approved.
Table of contents
What Will the New Consumer Credit Contract Law Cover?
This new consumer credit contract law, the EU’s Consumer Credit Directive, will be incorporated into Spanish law and will require digital processes to be more transparent, verifiable, and traceable, building a reinforced consumer-protection framework across the entire contracting journey.
Specifically, the draft law introduces obligations to: prove delivery of pre-contractual information; document the information given to the consumer; formalise contracts on a durable medium; evidence withdrawal; send reminders; and maintain traceable complaint-handling procedures. It also regulates phone-based contracting, automated offers, and creditworthiness assessments.
The rule will apply to all forms of consumer financing, from standard consumer credit to microcredit and fast loans issued through digital platforms.
The new consumer credit contract law will replace and expand the current regulatory framework for consumer credit. Specifically, it will:
- Repeal the current Consumer Credit Contracts Act (Law 16/2011)
- Repeal the Distance Marketing of Financial Services Act (Law 22/2007)
- Amend the recast General Law for the Protection of Consumers and Users
- Amend Law 10/2010 on the prevention of money laundering and terrorist financing
The consumer credit contract law also anticipates a follow-up implementing regulation (a royal decree) for certain matters, to be developed further through ministerial orders.
The Consumer Credit Contract Law in Detail
From Sending Information to Proving It Was Delivered
Under Article 26 of the Consumer Credit Contract Law, lenders must provide the European Standardised Information Sheet (ESIS) to the consumer clearly and comprehensibly before the consumer becomes bound by the credit agreement. For certain transactions, this information must be delivered at least 24 hours in advance.
When the documentation is provided with less notice, the lender must later send a reminder about the consumer’s right to withdraw and the procedure for exercising it.
Registered electronic communications, whether Registered email or Registered SMS, can provide legally valid traceability for the delivery of pre-contractual documentation and any follow-up reminders.
Consumer Explanations Must Also Be Documented
Under Article 27.3 of the consumer credit contract law, lenders and intermediaries must give the consumer individualised explanations about the product and be able to prove when and how those explanations were provided.
Lenders will need to think through how they record:
- What explanation was given
- What documentation was shown
- What channel was used
- The exact date and time
- What action the consumer took
If the agreement is arranged by phone, the consumer must be given a description of the service’s main features before the call ends, and the ESIS must be provided on a durable medium immediately afterwards.
The lender must also keep the recording containing the pre-contractual explanations.
Why the Durable Medium Requirement Matters
Under Article 34, contracts and any amendments must be formalised in writing or on another durable medium, and all parties are entitled to receive a copy.
The contract must also specify the medium the consumer has chosen for receiving reminders, amendments, and other communications once the agreement is in place. Whether the lender sends a binding offer or a personalised one, the consumer must always be clearly informed, and that must be documented.
“Durable medium” shouldn’t be read as simply emailing a PDF of the contract. It must let the consumer store the information, retrieve it for an adequate period, and reproduce it unchanged.
The Right of Withdrawal Moves Into the Digital Interface Itself
Under Article 47 of the Consumer Credit Contract Law, consumers have 14 days to withdraw from the agreement. Lenders must manage both the receipt of the withdrawal notice and the traceability of exactly when the right was exercised, along with its content.
Websites and apps used for contracting will also need a visible, permanently accessible withdrawal function, and lenders must confirm receipt of the withdrawal request to the consumer.
Document Retention for at Least Six Years
Under the third additional provision, lenders must retain pre-contractual information documents for a minimum of 6 years after the contract’s termination, and must make them available to the consumer upon written request.
Complaint Registration and Traceability
Under Article 51, lenders must maintain an effective, transparent, and free complaints service and log every complaint received, along with the steps taken to resolve it. A registered communication channel enables the legal evidence of both the receipt of the complaint and the acknowledgement sent to the consumer.
Notice Requirements Before Early Termination
Under Article 60, before declaring early termination of the contract, the lender must send the consumer a notice at least one month in advance, stating that they have that period, from receipt, to bring payments up to date.
Is Your Organisation Ready for the Change?
With the consumer credit contract law on the horizon, the real question for any organisation operating in the consumer credit market today isn’t “can we communicate, inform, or contract with consumers?”, it’s “can we prove that pre-contractual information was delivered? Do we log the explanations given to each customer? Can we evidence subsequent amendments and notifications?”
Building a structure to prove compliance will be one of the foundations of trust in digital credit management going forward. Organisations that treat this not just as a legal project, but as a technological, documentary, and operational shift, will gain a structural advantage over their competitors.
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