MADRID (Reuters – Spain has established a consumer protection office to help banks and other financial institutions comply with their obligations to customers. This will respond to claims of financial exclusion and unfair mortgage lending.

Nadia Calvino Economy Minister acknowledged the shift toward online banking that occurred during the pandemic, leaving a portion of the population exposed to financial exclusion.

Calvino stated that financial services was the most complained about area and has the highest level of litigation.

This new authority is whose creation was set forth in a draft bill. It will combine functions that were previously held by Bank of Spain and supervisor CNMV as well as the Directorate General for Insurance and Pension Funds.

This body will assume the responsibilities of those entities in regulation of financial entities and investment companies.

Codes of good practice in Spain have not had a lot of success, such as with mortgage contracts. In these cases, lenders were allowed to negotiate terms directly with their clients. Still, mortgage complaints make up the majority of all cases filed with Bank of Spain.

Independent financial customer ombudsman authority, which will fall under the Economy Ministry umbrella, will be available at no cost to financial customers. The fee for every accepted complaint will amount to 250 Euros ($273) and is payable by the Financial Firm involved.

There is no timetable yet for progressing with the bill draft or creating the new authority.

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