Ombudsman Takes Proactive Initiative to Strengthen Consumer Protection in Microcredit Sector

The Ombudsman, Angel Gabilondohas taken a proactive initiative involving the Bank of Spain and the Secretary of State for Economy and Business Support. This step focuses on evaluating and strengthening consumer protection in the field of microcredit.

Context of microcredits

Microcredits, also known as quick loans, are mainly aimed at consumers in precarious or desperate economic situations. These loans, which usually range between 1,000 and 10,000 euros, are granted easily, often automatically and without an exhaustive risk or solvency analysis.. This leads many to a situation of overindebtedness.

Associated problems

Consumers who opt for these loans often lack adequate financial information and advice. Besides, The ease of obtaining these credits contrasts with the return conditions: short terms, high interest and high commissions. This scenario has led to numerous complaints from citizens.

Actions of the Ombudsman

In this situation, The Ombudsman has requested information on the control actions carried out by the Bank of Spain and the Secretary of State for the Economy. Specifically, we seek to know if there is any specific regulation or guideline that regulates the granting and administration of these microcredits.

Absence of specific regulations

Despite court rulings in favor of consumers and self-regulation by companies, There does not seem to be a specific regulation that regulates these financial products.. Existing regulations focus more on general consumer protection and the rules of the Civil Code and the Commercial Code.

Future of consumer protection

The Ombudsman also investigates the possibility that the future Independent Administrative Authority for the Defense of the Financial Client includes the protection of microcredit consumers within its powers. This action could offer a more robust framework for defending the rights of consumers affected by these practices.

In conclusion, Ombudsman’s initiative underlines the need for stricter supervision and regulation in the microcredit sector to protect vulnerable consumers. The response of the competent authorities and the measures adopted will be essential to guarantee greater equity and justice in this financial sector.

2024-01-05 05:20:39
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