Analysis of the CJEU Ruling and its Impact on Lending in Spain

In this blog, Welex, a leading Spanish law firm of lawyers and accountants, explains the recent ruling of the Court of Justice of the European Union (CJEU) and its significant impact on lending. We analyze in detail how this legal decision influences the financial landscape and the implications it entails.


The Court of Justice of the European Union (CJEU) issued a ruling on 11 January on the obligation of lenders to assess the consumer’s creditworthiness before granting a loan. Otherwise, according to national law, the loan can be declared void, which means that the lender loses the right to the payment of the agreed interest.

Analysis of the CJEU Ruling and its Impact on Lending

Directive 2008/48 establishes in Article 8 an obligation for member states to ensure that, before signing a credit agreement, the creditor assesses the consumer’s creditworthiness. This is based on sufficient information, provided by the consumer if necessary, and, where appropriate, by consulting the relevant database. If this assessment is not carried out, states may impose sanctions as they deem appropriate.


The CJEU states in its judgment that it is important that lenders do not lend irresponsibly or without first assessing the creditworthiness of the borrower. It also requires Member States to carry out the necessary checks to prevent such behavior.

In addition, the Directive provides that the creditworthiness assessment must be carried out continuously during the business relationship. The creditor must update the consumer’s financial information and reassess his creditworthiness before significantly increasing the amount of credit.


What is interesting about this ruling is that it provides for the possibility of sanctioning a creditor for not fully assessing the consumer’s creditworthiness, even if the consumer has fully repaid the loan and has not objected to the contract during the repayment process, i.e. after the end of the contractual relationship between lender and borrower.


According to the CJEU, a breach of the lender’s obligation to check the consumer’s creditworthiness cannot be remedied by the mere fact that the credit agreement has been fully performed, or the fact that the consumer has not raised any objection against the credit agreement during the repayment period.


We thank you for your attention to this detailed analysis of the recent CJEU ruling and its implications for credit. At Welex, we are committed to clarity and understanding of the legal complexities. For any questions regarding this law, tax or accounting issues, please do not hesitate to contact us. We are here to provide you with expert guidance and personalized assistance. Your trust is our commitment.