SPAIN Trends and Developments Contributed by: Alfonso López-Ibor, Pablo Henriquez de Luna, Virginia Jover and Carmen Serrano, López-Ibor DPM
this should not result in absolute exoneration at the expense of financial institutions – especially when banks comply with their legal duties and implement strong security systems under which the consumer formally authorises and validates transactions. Indeed, in a significant number of cases, it is the negli- gence of the consumer or user – through their own lack of care – that triggers the events they report. However, these situations often involve diligent banking institu- tions with strict measures (which also involve consid- erable investment in financial and human resources) to prevent and detect this type of fraud – measures that are clearly bypassed by the negligent and defrauded consumer. Therefore, even if higher standards are expected from banks due to their superior position, this does not mean they should serve as absolute guarantors, tak- ing on a public watchdog role that is not legally theirs. In conclusion, there is a growing judicial trend demanding greater diligence from consumers, while maintaining the need for banks to uphold high secu- rity standards. The challenge for the courts will be to strike the right balance between user protection and the reasonable liability of financial intermediaries, without imposing undue burdens on banking institu- tions.
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