It’s March 15, consumer rights day. In Spain progress is being made in their protection but there are several fronts to cover, alerts Ileana Izverniceanu, spokesperson for the OCU. The person in charge criticizes the little impact that the sanctions for non-compliance generate in the companies, which lengthens the abuses.
In this interview with La Vanguardia, he also focuses on the perfect storm of rising prices and mortgages that is increasingly eroding family economies. To tackle inflation, with not very positive prospects, he supports a review of the margins of the food chain and a greater monitoring of the VAT reduction.
Is Spain improving in the defense of consumer rights or are there gaps to be closed?
We are advancing towards greater protection, which is given 98% from Brussels by common law. We are implementing it, sometimes with a delay. In legislative protection we are on a par with other European and surrounding countries but then the same does not happen on a day-to-day basis. The consumer continues to have significant problems with large sectors such as energy, banking, telephony… Although we have abundant legislation, when the consumer has problems, they are forced to sue, the worst situation. The rules need to help companies settle claims in a friendly manner.
Why does it keep happening?
Many times, it pays off for companies to fail to comply. The penalty, if it comes, is derisory. That doesn’t change behavior.
Any usual suspects?
Energy companies and banks are in the first places in claims. First, because the consumer feels digitization like a roller, which passes over them without taking their needs into account. It’s okay to digitize, but you have to do it with everyone in mind. Rural, urban, people of a certain age… There are even some, more and more, who do not want to go digital, who want to relate to the bank in a more traditional way.
The bank seems to be in the crosshairs again.
Finding room for maneuver with banks continues to be very difficult. They are the ones that are adding the most claims. The main complaint is that the commissions are getting higher and higher. And today there is the mortgage front, where there is an imbalance: when the Euribor was negative, the mortgagee was not paid, it was never achieved, although we fought for it at the Bank of Spain. Now the increases do move quickly.
There are also many complaints about revolving. The bank does not mediate and ends up taking legal action. It so happens that many of these clients are vulnerable, with difficulties and little economic capacity to go to a lawyer. The new Financial Client Defense Authority may be a solution. Above all, the extrajudicial resolution of conflicts is positive, but it is necessary to see that the text is done…
In addition, phishing (impersonation of the entity to steal the data) is on the rise. Here the bank looks the other way, says it was a cyber attack, but it has to do everything in its power to prevent it. If the only way is digitization and digitization is not safe… It is incongruous to force it to be done and not solve problems.
Scanning unprotects then?
Digital must be a safe environment for those who are not yet prepared. If the answer to a conflict is to look the other way, we go backwards in consumer protection. The companies do not give all the security that they would have to give. It is not as pretty as they paint it.
Do only companies sin?
Complaints towards the Public Administration are growing. After the pandemic we have not returned to the levels of convenient public care. The previous appointment has been installed, request it online, by phone. Adequate service is not being provided. It is public, it is more bloody than bad service from a bank, which is still a private company. We will investigate it further.
The first concern today is prices. And the mortgage, the bills…
Inflation is hitting hard. Our annual solvency surveys show that consumption habits have already clearly changed. In the latest data we have, which will be published shortly, the financial capacity of families drops two points again (comes from 47.9 out of 100 in 2021). It’s a lot. The situation is seriously worsening. We don’t know where the end will be.
In this environment, the consumer tries to defend himself, change companies, save money. But in something as basic as the shopping basket, with a rise of more than 15% in basic products, it really is very difficult.
Have the government measures been effective?
Not as effective as we thought. It has been more gimmicky than effective unfortunately. We asked for a VAT reduction on food, energy and fuel. But the measure in food weighs very little, the most expensive products such as meat or fish have not been touched. And the follow-up is not being done, we have to see if there are speculative increases. In January we monitored and saw that the supermarkets complied. We have done others and it is no longer noticeable…
Should the margins of companies be monitored as is being put on the table in other countries?
It would be a good idea. Transparency in all the links in the chain would be basic, see how much they are taking. The farmers say that they have no profit, but we hear that they are happier than in other years, because they are exporting more and the chain cannot buy from them at a loss. Hence the prices rise here too. You talk to the distribution and they are happy too. The consumer pays for the party.
First there was the rise in electricity. Then food and everything in general with the arrival of the war. Do you see the end of high inflation? Return to a normal situation?
Not for the moment. The significant rise in inflation started in August 2021. There was no war… The conflict has made it worse. Besides that we are concerned about some music. We are hearing many statements, even from Brussels, saying that “everything has to go up” that “the consumer has to get used to the fact that electricity has to be paid more”, “milk will be more expensive because there will be fewer cows”, “which is the price of sustainability”… They are preparing us for this price level and we disagree. Other methods will have to be found so that all consumers can survive and live with dignity.
Isn’t it done enough?
We have been eaten by the hubbub of excuses, of problems, and nothing more than patches are being made in the most important acts of consumption such as housing, mortgages, food and supplies, which is consuming more of the family budget. It is time to help vulnerable families more, the municipalities can detect them. Reduce VAT on meat and fish. And do not give a check that is not mandatory to spend on food, which can go to other consumption, it has to be guaranteed that it goes to basic products.
If we look at consumption, what model should we go for?
We must help local commerce, local agriculture, local product repair to really exist. Now food sovereignty is in fashion. You have to explore it, not for fashion, but because what is closer may be cheaper and that will be better for consumers. But not with abuses as is taking place. The consumer is not happy to pay more if everything is sustainable, it is not true. The main parameter by which it moves today is the price. Being so high, he has stopped consuming more sustainable products because they are more expensive.
