On Mar. 11, 2025, ESP PRL published adopted bill (Law 121/000049) in official gazette (BOCG-15-A-49-1) on credit administrators, buyers to reform credit agreements law.
Follows ESP GVT Mar. 2025, approved bill on customer protection, see #245839.
Law on credit administrators and purchasers, amending the Financial System Reform Measures Act, and the Consumer Credit Contracts Act, amongst others.
Includes amending the Act on the Regulation, Supervision and Solvency of Credit Institutions, and the Act Regulating Real Estate Credit Contracts.
Law 121/000049 (law) also amends the Consolidated Text of the Bankruptcy Act.
Deadline on amendments to the law set by Mar. 24, 2025.
Law refers to provisions in EU Capital Requirements Directive and corresponding regulation (CRD/CRR), in addition to provisions of Dir 2021/2167.
Dir 2021/2167 specifies rules on credit servicers and credit purchasers, which is an European strategy to address the issues of non-performing loans (NPLs).
In Spain, it has not been deemed appropriate to extend requirements of Dir 2021/2167 to management of non-doubtful loans or credit agreements.
Requirements in Spain are set out in the full text of the law.
Provisions of European directives and regulations transposed are provided in the Law.
Law comes into force 20 days after publication in official gazette, eff. Apr. 3, 2025.
As an exception, the first final provision enters into force six months after the publication of this law in the Official State Gazette (OG), eff. Sep. 14, 2025.
Sections one, three, four, five, and six of the second final provision shall enter into force two months after publication of this law in the OG, eff. May 14, 2025.
Sections one, two, and three of the fourth final provision shall enter into force two months after the publication of this law in the OG, eff. May 14, 2025.
ESP GVT Council of Ministers approved pre-draft bill on credit administrators, buyers.
It will amend Law 16/2011 on consumer credit contracts, Law 5/2019 on mortgages.
Agreement authorized urgent administrative processing in art 27.1.a) of Law 50/1997.
Follows ESP GVT Dec. 2022 issued prior consultation on implementation, see #156983.
Overview
The Council of Ministers approved pre-draft bill on credit (NPLs) administrators and buyers, which transposes a Directive on matter, modifies the above-mentioned laws.
It reinforces protection of financial consumers, especially those in situation of economic vulnerability, guaranteeing their rights are respected, offered solutions to face debts.
Likewise, financial stability is favored, making it easier for financial entities to sell their loan portfolios, allowing them to clean up their balance sheets and improve solvency.
Key Aspects
Draft, to be published in Public Hearing to collect the opinions of economic operators, regulates sale and purchase of doubtful credits and doubtful mortgages by EU credit entities subject to Spanish regulations, sets common rules for operations of market.
Regulates activity of administration of doubtful credits (collection or renegotiation of doubtful credits), that becomes reserved activity, requires ESP CB prior authorization.
To protect consumers, requirements to obtain this authorization established, to have adequate internal complaints management system.
As well as adequate policy that guarantees protection and fair treatment of borrowers.
Purchase and sale of doubtful credits regulated, ensuring maintenance of conditions, rights of borrowers, transferring obligations of transparency, protection, information, including compliance with codes of good practices to which the initial creditor adhered.
It creates additional guarantees for protection of borrowers, which oblige both buyers and services to provide adequate treatment and sufficient information.
That, in addition to having adequate borrower service and extrajudicial claims service.
To ensure compliance with these obligations, ESP CB will supervise credit buyers and services, also establishing the corresponding regime of infractions and penalties.
In sectoral regulations for consumer credit and real estate credit, obligation introduced for lenders to have debt renegotiation policy.
They must offer borrower, before initiation of legal actions or demand for full payment of the debt, measures aimed at reaching renegotiation agreements.
Special conditions for borrowers in economic vulnerability beneficiaries of Minimum Living Income and people below minimum income thresholds in additional situations.
In these cases, lending entity that will sell the doubtful credit to third party must offer borrower possibility of repaying credit by applying partial write-off or forgiveness.
The latter should be aligned with the estimated amount of the sale of the credit.
Additional debtor protection measures are introduced in Consumer Credit Law, aimed at improving information and protection of these clients.
Late payment interest to be charged in cases of non-payment by consumer is limited.
The cases of modification of interest rate in contracts of indefinite duration (as in case of revolving cards) defined, allowing clients not to accept increases or cancel contract.
Finally, conditions of compensation for early repayment clarified in case of financing linked to the purchase of goods or services.
May 2024 Public Hearing
On May 17, 2024, ESP GVT launched public hearing on pre-draft bill on credit buyers.
As mentioned above, it amends sectoral regulations on consumer credit and real estate credit to introduce obligation for lenders to have a debt renegotiation policy, etc.
To repeal provisions of equal/lower rank opposed to its provisions; enters into force 20 days post official publication save for 1st, 2nd final provisions (2 months after that).
The latter refer to amendments made to Law 16/2011 and Law 5/2019, respectively.
Hearing (i.e. pre-consultation process) to close on May 31, 2024; form made available.
On Feb. 11, 2025, ESP GVT Council of Ministers adopted agreement requesting Council of State's Permanent Commission to issue an urgent opinion on the pre-draft bill.
I.e. preliminary draft bill on credit administrators and buyers, amending Law on Measures to Reform Financial System, Law on consumer credit contracts.
Also amending the Law on regulation, supervision, solvency of credit institutions and Law regulating real estate credit contracts, as well as consolidated Bankruptcy Law.
Opinion requested by no later than Feb. 20, 2025.
Mar. 2025 ESP PRL Adopted Law
On Mar. 11, 2025, ESP PRL published adopted bill (Law 121/000049) in official gazette (BOCG-15-A-49-1) on credit administrators, buyers to reform credit agreements law.
Follows ESP GVT Mar. 2025, approved bill on customer protection, see #245839.
Law on credit administrators and purchasers, amending the Financial System Reform Measures Act, and the Consumer Credit Contracts Act, amongst others.
Includes amending the Act on the Regulation, Supervision and Solvency of Credit Institutions, and the Act Regulating Real Estate Credit Contracts.
Law 121/000049 (law) also amends the Consolidated Text of the Bankruptcy Act.
Deadline on amendments to the law set by Mar. 24, 2025.
Law refers to provisions in EU Capital Requirements Directive and corresponding regulation (CRD/CRR), in addition to provisions of Dir 2021/2167.
Dir 2021/2167 specifies rules on credit servicers and credit purchasers, which is an European strategy to address the issues of non-performing loans (NPLs).
In Spain, it has not been deemed appropriate to extend requirements of Dir 2021/2167 to management of non-doubtful loans or credit agreements.
Requirements in Spain are set out in the full text of the law.
Provisions of European directives and regulations transposed are provided in the Law.
Law comes into force 20 days after publication in official gazette, eff. Apr. 3, 2025.
As an exception, the first final provision enters into force six months after the publication of this law in the Official State Gazette (OG), eff. Sep. 14, 2025.
Sections one, three, four, five, and six of the second final provision shall enter into force two months after publication of this law in the OG, eff. May 14, 2025.
Sections one, two, and three of the fourth final provision shall enter into force two months after the publication of this law in the OG, eff. May 14, 2025.
Regulators
ESP GVT; ESP PRL
Entity Types
Bank; CNSM; CU; MG Orig; MSB; Servicer
Reference
BOCG-15-A-49-1, Law 121/000049, 3/11/2025; PR 2/11/2025; CP, PR, 5/17/2024; PR 5/14/2024; Law 16/2011; Law 5/2019; Law 50/1997; Dir 2021/2167; CRD/CRR Dir 2013/36, Reg 575/2013; CRR 2 Reg 2019/876; Reg 2019/630; Citation: BOCG-15-A-49-1;
