With traditional banks, there is no doubt that they all belong to the Bank and that they are heavily regulated. Does the same thing happen with financial institutions that have appeared in recent years and that offer online loans and fast loans? Who controls them? In what ways are we protected as customers and users of your financial services? In this article we will clear these doubts.
The main category of entities: Financial Credit Establishments (EFC)
It is evident that, with so many types of loans, amounts, terms, costs and interests, not all entities are equal. However, the vast majority belong to this category: EFCs are private financial entities constituted in the form of a mercantile company before the corresponding Mercantile Registry, and their main business purpose is to grant loans. They do not offer deposits, accounts, or other products: only financing in its different modalities, management or issuance of credit cards, and granting of guarantees.
As such, they respond to the bank , who defines this category and who established it in its day. So they must be accredited against it and answer for what the regulations of the Bank establish. They are regulated in Law 5/2015, of April 27, which establishes creation conditions similar to those of banks, but with lower capital requirements.
On the other hand, there is a law called Law 16/2011, on consumer credit, which regulates the vast majority of loans and credits that these entities offer, their guarantees, and the limits of what entities may or may not do. So, with one law for entities and another for products, all guarantees for the customer are secured.
The mini-credits: a separate case
If the amount granted is less than 200 dollars, private equity entities that offer microcredit must not register as an EFC or respond to the bank . Fortunately, there are very few entities that offer this product exclusively: most offer larger amounts as well, which forces them to register as an EFC so as not to limit their own market. Other specialized ones are as reliable as any other entity.
Many of these entities are also self-regulating through the creation of the Association of Micro Loans, with a code of good practices and principles that allow extending the protection of customers.
There are many pages that allow you to search for loans and others that collect customer data and send you personalized offers through the search for financials on your behalf. This, since it is not a direct financial service, allows the client to deal directly with the entity that lends the money.
They may or may not charge for this service, regardless of whether the client confirms the loan or finally does not.