Banking and Finance law addresses the legal footing for the structuring and formalization of structured finance, refinancing and capital market operations. It ranges from asset financing through loans or lines of credit, with or without collateral, to consumer credit or leasing agreement operations.

The Pre-contracting Process of a Consumer Credit Agreement in Spain

One of the basic pillars of the Consumer Credit Agreement Law in Spain (Law 16/2011) is the development of the regulation of the pre-contracting process; that is, the steps prior to a creditor and a consumer entering into a consumer credit agreement.

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.

FinTech: A booming sector in Spain

Spain possesses numerous advantages to welcome start-ups in the FinTech sector. Spain can benefit from the consequences of Brexit if it decides to create a favourable field for such start-ups.

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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.

How to develop consumer credit activities in Spain

A consumer credit agreement (CCA) is an agreement whereby a creditor grants or undertakes to grant credit in the form of a deferred payment, loan, credit facility or any other equivalent way of financing in favour of a consumer.