Credit Governance and Transparency Guide revolving enters into force

19/12/2024

Revolving or revolving credit cards are a relief product for many consumers looking for fast financing, but their operation presents some complex aspects that it is necessary to understand for their correct use and avoid scares due to their amortization, as we have explained in previous postsAbre en ventana nueva. Therefore, the revolving credit has since 2020 a differentiated regulatory treatment that added new reporting obligations and other measures related to the evaluation of the ability to pay of its users.

As part of its supervisory role in the area of conduct, the Banco de España has drawn up a Governance and Transparency GuideAbre en ventana nueva on revolving loans for supervised entities (the “Guide”), which will enter into force on 31 December this year. The purpose of the Guide is to establish supervisory guidelines to facilitate compliance by institutions with the rules applicable to the governance and transparency of revolving credit and to promote best practices related to revolving credit products.

Therefore, it is possible that if you have a revolving card or other product of this type, you will receive some communication from your entity informing you of possible contractual modifications that it has carried out to adapt to the provisions of the Guide. This provision of information is normal and improves transparency for consumers.

“Disclaimer: Please note that this is a translation of the original in Spanish that has been obtained using eTranslation (the machine translation tool provided by the European Commission), with the intention of giving you a basic idea of the content in English until a human translation becomes available. The Banco de España accepts no liability whatsoever in connection with this translation.”