The Legal framework on Consumer Credit Agreements in Spain

In Spain, Law 16/2011 derogated the previous legal regime (dating back to 1995) and transposed Directive 2008/48 of 23 April 2008 on credit agreements for consumers (the Directive) into Spanish law. Law 16/2011 reproduces the provisions of the Directive. Furthermore, where the Directive has failed to include specific provisions, the old regime has been maintained or even extended to new scenarios, with the aim of increasing the protection granted to Spanish consumers.

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Rights and obligations under Consumer Credit Agreements

Law 16/2011 transposed the Consumer Credit Directive on consumer credit agreements to Spain. The objective of the law is to foster the integration of the consumer credit market and grant a high level of consumer protection by focusing on transparency and consumer rights.

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Merry-Go-Round of Amendments to the Spanish Insolvency Law

Three partial reforms of the Spanish Insolvency Law have already been approved by means of Royal Decree-Laws dated on March 2014, September 2014 and February 2015. The three main purposes sought are: enhancement of prepetition restructuring deals; extension of pre-insolvency refinancing agreements to composition agreements and offer a second chance for individual creditors.

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New Effects of Filing for Pre-Insolvency in Spain: 5 Bis Communication

On March 8, 2014, Spain introduced Royal Decree-law 4/2014, known as the New Reform, to enhance the Spanish Insolvency Law. Acknowledging the inflexibility in pre-insolvency and insolvency systems, the reform aims to boost refinancing discussions. It achieves this by establishing a more secure pre-insolvency environment, safeguarding the debtor’s key assets against enforcement by unsecured creditors.

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The Position of the Bankrupcy Mediator in Spain

The Entrepreneur Support Act (Law 14/2013), enacted on September 27, 2013, introduced the bankruptcy mediator role. Published in the Spanish Legal Bulletin (BOE), it also brought partial modifications to the Insolvency Act (Law 22/2003) on July 9, 2003.

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