Rules for buying financial services at a distance

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1. The law sets the rules for contracts for financial services (banking, investment, insurance, pension plans) that are negotiated and signed at a distance, without the parties meeting in person, by phone, fax or electronic means.
2. Before signing, the provider must give the consumer full information: who they are, the total price including fees and taxes, the risks of the service, whether there is a right of withdrawal, and how to complain. If they fail, the contract can be void.
3. The consumer can withdraw from the contract within 14 calendar days (30 for life insurance) without giving reasons and without any penalty. There are exceptions, such as products whose price depends on the markets, mortgage loans and pension plans.
4. If a payment card has been charged fraudulently or improperly, the cardholder can demand the immediate reversal of the charge. Providing unsolicited financial services that involve payment is also banned.
5. Consumers cannot waive the rights the law gives them, and it is the provider who must prove they met their information duties and that the consumer consented.
6. Breaches are sanctioned under each financial sector's rules or, failing that, as a consumer offense. Consumer arbitration and out-of-court complaints are also promoted.

Who it affects

• Consumers who buy financial services by phone, internet or other distance means: They receive mandatory information before signing and can withdraw within 14 calendar days in most cases.
• Banks, insurers, investment firms and other financial providers: They must inform before the contract, keep records on a durable medium and face sanctions if they breach the rules.
• Payment cardholders: They can demand the immediate reversal of fraudulent or improper charges.
• Consumer associations, the National Consumer Institute (Instituto Nacional del Consumo) and the Public Prosecutor: They can bring cessation actions against conduct that harms consumers.

Words worth knowing

Desistimiento (right of withdrawal)

The right to cancel a signed contract within a set period, without giving reasons and without any penalty.

Soporte duradero (durable medium)

Any means that lets you store information addressed to you and retrieve it later unchanged, such as paper or email.

Acción de cesación (cessation action)

A lawsuit to force someone to stop illegal conduct and forbid them from repeating it.

Arbitraje de consumo (consumer arbitration)

A system to resolve disputes with companies without going to court, through an arbitrator who issues a decision.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries