The draft Law on Consumer Credit Contracts is an opportunity to generate a solid legal framework that reinforces a key sector for thousands of households facing unforeseen economic events. However, the final design of the regulation must be prudent, realistic, and adapted to the reality of microcredit in Spain, because otherwise it may trigger counterproductive effects that harm, rather than protect, consumers.
In our country, more than 35% of the population does not have the ability to save to cover unforeseen expenses, according to the 2024 INE Living Conditions Survey. In this context, regulated microcredit becomes a fundamental tool to address immediate and specific needs, with a volume that in 2025 reached 1.236 billion euros, granted in almost four million contracts by companies associated with AEMIP.
The final design of the regulation must be prudent, realistic, and adapted to the reality of microcredit in Spain
These figures reveal that we are not talking about large loans, but about small amounts used to cover specific emergencies. In fact, 59% of these microcredits are requested to address unforeseen household expenses, 11% for health emergencies such as dentists or physiotherapy treatments, and 8% are linked to educational expenses (according to AEMIP's own data). Therefore, beyond the volume, microcredit fulfills an irreplaceable social function, a “liquidity bridge” that helps to avoid financial exclusion in critical moments.
However, the current design of the draft presents several challenges that could severely weaken the regulated channel. Severely limiting remuneration without considering the cost structure or the higher risk assumed in very short-term microcredits with high volatility may make the business model unviable for many companies. This not only harms the sector but also leaves a significant part of the population without access to formal financing, pushing them into the informal or unregulated market, where guarantees disappear and the risk of over-indebtedness and abuses increases.
Regarding other planned measures, imposing a mandatory minimum duration of three months for high-cost loans and a closed reflection period of 24 hours do not fit with the nature or the real utility of microcredit. The real need is usually punctual and urgent; extending the debt or forcing waiting times can increase the cost for the consumer and reduce the agility that the product requires to remain an effective solution. Therefore, what we propose from AEMIP is to maintain flexibility so that the consumer can repay early without penalties and that immediate contracting is possible as long as they receive clear and complete information about their rights, in line with European requirements that do not impose rigid deadlines but rather “sufficient time” for reflection.
Spain has the opportunity to learn from international experiences where poorly adjusted regulations, although well-intentioned, have caused the disappearance of the regulated channel and the growth of the informal and unsupervised market. In the United Kingdom, for example, the British model of “high-cost short-term credit” limits daily interest, fees, and total cost to prevent abuses without eliminating the formal offer. This balanced approach is a reference to prevent protection from becoming financial exclusion.
Beyond the volume, microcredit fulfills an irreplaceable social function, a “liquidity bridge”
In this context, AEMIP has been working for years to raise and professionalize the standards of a sector that bets on transparency, supervision, and responsibility, with a mandatory Code of Good Practices for its associates. For its part, the technical dialogue with the Government and parliamentary groups has been constant, through detailed allegations that seek to avoid negative impacts for those who depend on this financing.
The challenge is to balance protection and economic viability, understanding that limiting or excessively tightening access can increase financial exclusion, contrary to regulatory objectives. Therefore, the new law must consolidate a strong and responsible sector that offers an agile and secure response to a real need.
In short, to regulate without losing sight of reality, so that microcredit continues to be a valuable social instrument, that protects consumers and strengthens the formal financial system, preventing those who need it most from being pushed into unregulated markets and without any guarantee.