Consumer credits

If you decide to apply for credit to purchase a product, compare the offers before you make your decision. Before signing a contract, the credit provider must give you a document called Standard European Consumer Credit Information. This contains the best possible analysis of the terms and conditions of the contract that you are considering. The document includes:

• The main characteristics of the contract.
• The amount of the loan and the cost.
• The annual percentage rate (APR, a single figure equivalent to the total cost of the credit: interest, commissions, taxes and any other type of expenditure).
• The number, the frequency and the amount of all the payments.
• A note on the significant legal aspects.

This will allow you to compare the offers from different credit providers and select the most suitable for you. If the credit provider does not give you this document, you may ask for it.

If you have any doubts about the contract which you have signed or if you realise after signing that you no longer need the loan, you may terminate the contract within 14 calendar days from the date of signing. You are not required to offer any explication, but you will have to return the money loaned, plus the interest and all non-reimbursable commissions that the credit provider has already paid.

If you wish to repay your loan before the date stipulated in the contract, you are entitled to do so. But you must know that it is possible that you will have to pay compensation to the loan provider for their loss in income. In any case, the compensation may not be greater than the total amount of the interests that have been paid.

These regulations apply to consumer credits from 200 Euros to 75,000 Euros, except for loans:

• Guaranteed with a mortgage.
• Taken out to purchase land or property.
• Relating to a lease without obligation to purchase or a financial leasing.
• Awarded free of interest, without charges or in the form of an overdraft which is repayable within one month.
• The result of a legal ruling.
• Relating to loans awarded to a restricted public.

If you wish to take out credit or a loan in another EU country, remember that banks may be reluctant to offer loans to residents of other countries or even to award loans to residents of the same country but who work in another EU country.

Although the banks are free to place these types of limits on the loans they offer, they must abide by the general principle of non-discrimination on the grounds of nationality and, therefore, they may not discriminate against EU citizens on the grounds of their nationality.

If you consider that a bank has engaged in discrimination against you, you may:

• Contact the bank (or their complaints office) to obtain a written response laying out the exact reasons as to why the credit was refused.
• Depending on the written answer from the bank, you may seek advice and assistance at FIN-NET (the financial dispute resolution network), which acts as a mediator in financial conflicts between consumers and financial service providers, such as banks.

European legislation

• Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features.
• Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009.
• Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC.

Spanish legislation. Laws

• Law 16/2011 of 24 June, of consumer credit contracts.
• Law 22/2007 of 11 July, on distance commercialization of financial services for consumers.
• Law 16/2009 of 13 November, of payment services.
• Royal Decree-Law 8/2014 of 4 July, of approval of urgent measures for growth, competitiveness and efficiency.