Government opens sanction proceedings against 17 payday loan companies

The Catalan government has opened sanction proceedings against 17 companies that offer payday loans due to abusive clauses and practices, with potential fines ranging from €10,000 to €100,000 per case.

Isidor García, director of the Catalan Consumer Agency, emphasized that the cost of these loans is "infinitely higher" than that of ordinary credit, noting that interest rates can exceed 300% and reach up to 400% in cases of late repayment. 

He also warned that some companies are profiting at the expense of vulnerable people who have no alternative but to take these loans, and noted that borrowers with addiction problems have also been identified.

García described the issue as "structural" within the sector. "I have no doubt about it," he said, calling for "strict and decisive" regulation from the Spanish government.

The actions follow an inspection campaign carried out in the final months of 2025, which examined 21 companies offering online financing. 

In the light of this, the consumer agency has launched information campaigns to warn citizens about the risks associated with these products and has urged consumers to read the loan clauses carefully.