With the entry into force of Organic Law 1/2025, anyone wishing to file a civil lawsuit over financial, insurance, or contractual disputes must first attempt to reach an agreement with the opposing party. Among the recognized Alternative Dispute Resolution (ADR) mechanisms, the Confidential Binding Offer (CBO) now plays a central role in consumer protection.
This legal instrument—required to be clear, detailed, signed, and legally binding—represents a formal proposal to settle a dispute. If accepted, it becomes enforceable. Its purpose is to avoid unnecessary litigation, promote amicable settlements, and ensure a fairer balance between consumers and large entities such as banks, insurance companies, or investment funds.
It is also important to note that, in addition to being binding, the process is confidential. Except under specific circumstances, its contents cannot be used as evidence in court. This safeguard is designed to encourage sincere negotiations without fear of later legal repercussions.
Failing to respond to or ignoring a CBO can have legal consequences. Silence is interpreted as a rejection, potentially paving the way for a lawsuit. Therefore, consumers receiving such an offer are advised to keep all documentation and avoid signing or accepting hastily. In case of doubt, it is strongly recommended to seek advice from a lawyer specialized in the relevant area of law. Furthermore, in cases where the amount claimed exceeds €2,000, the law requires consumers to obtain legal representation.
Consumer protection authorities stress that access to justice now begins with pre-litigation negotiation, and both companies and individuals are subject to this new legal requirement. If faced with a conflict, consumers are urged not to sign anything without legal advice and to retain all received documentation.
Source of information: General Council of the Spanish Bar (Consejo General de la Abogacía)