Consequences of the assessment of creditworthiness of the borrower

Abstract

In this paper it's analyzed the consequences of one of the bases of the responsible credit principle: the previous assessment of creditworthiness of the borrower. In recent years, our courts have shown practices of irresponsible granting of loans. The European Union and the Spanish legislator have tried to curb this situation with different rules by forcing the lender to assess the solvency of the borrower prior to the granting of the credit. However, in the case of non-compliance with this obligation or in the case of granting of credits despite a negative result in the solvency assessment, our regulation do not include specific civil penalties, referring to administrative sanctions. This paper examines the regulation on the subject and points out proposals and consequences in the context of the effects of the contract.