In general terms, both asset-side (credit) and liability-side (savings) transactions require that a series of points be explicitly and clearly stated, which the authorities consider to be of greater interest to the client and which are, among others, those related to:
- Interest. The nominal interest rate is required to be shown in the contract and, if it is variable, to state unequivocally how the variation will occur.
- The annual percentage rate (APR).
- The periodicity of the accrual of interest, as well as the dates of accrual and settlement thereof.
- The applicable commissions, indicating the concept, amount and date of accrual and settlement.
- Expenses borne by the client.
- The term of the transaction and, where appropriate, the conditions for its extension.
- The rules regarding the applicable value dates.
- Possibilities of early cancellation of the transaction and the total cost that the use of such powers would entail.
To the above, there should be added some specific mentions regarding deposits, consumer and mortgage loans and credit facilities, and payment services:
- Commissions-expenses: Commissions will be those freely set by credit institutions. Commissions may only be received or expenses may be passed on for services firmly requested or expressly accepted by a client and provided that they relate to services actually provided or expenses incurred. Credit institutions must make available to customers, duly updated, the commissions usually received for the services they provide more frequently, as well as the expenses incurred in such services. This information will include, in a simple way, the concepts that accrue commission, the periodicity with which they are charged and the amount thereof, disaggregated by period in which they are charged, and will be available in every branch of the institutions, in their websites and in the website of the central bank, and it must be available to customers all the time and free of charge.
- Interest rates: Both in asset-side and liability-side transactions will be set freely. As in the case of commissions, institutions must make available to clients, duly updated, the interest rates usually charged to the services they provide more frequently. It will be reported on the annual percentage rate (APR) or equivalent expression of the transaction.
- Advertising: It must be clear, objective and not misleading.
- Precontractual information: Institutions are obliged to provide the banking services customer free of charge with the legally required precontractual information, so that they can make an informed decision about a banking service and compare similar offerings. This obligation to provide precontractual information is found, for example, in consumer and mortgage credit matters or in payment services. Its delivery must be prior to the client being bound by the contract or offering.
- Provision of explanations: This obligation to provide precontractual information is reinforced by the recognition of another obligation whereby credit institutions must provide every client with adequate and sufficient explanations to understand the essential terms of every banking service offered and to make an informed decision, taking into account their needs and their financial situation.
- Contractual information: Institutions must deliver to their customers a copy of the contractual document in which the service received has been drawn up. It also regulates the communications sent to their customers relating to banking services, unilateral change by the institution of the initially agreed-upon terms and the document stating interest and commission settlement. Both the contract and the rest of abovementioned documents will be delivered in hard copy, in electronic format or in other durable medium, and will be drafted in readily understandable terms and in a clearly legible manner.
- Duty of care: The institutions will execute the orders of the clients in a timely fashion and without delay, and will correct the errors detected, using the utmost diligence.
