Becoming a negative consumer has become a common expression in the Brazilian financial vocabulary. In a society where credit is essential for the realization of dreams and objectives, having one’s name associated with debts can be a significant obstacle.
However, many people are unaware that Brazilian legislation offers a series of protections to those who are negative. The law is clear about the rights and duties of both the debtor and the collector.
In this context, understanding the rights of the negative consumer and the nuances of the legislation is essential. Below, learn more about how to protect and claim your financial rights!
Rights of the negative consumer
The consumer, when negative, does not only lose access to credit but faces a series of restrictions that can affect their daily life and future plans. However, Brazilian legislation ensures a series of rights to these consumers, ensuring that they are not unfairly harmed and have mechanisms to regularize their situation.
Understanding defaulting
What is defaulting?
Defaulting goes beyond a simple record. It is a mark that signals to the market that the consumer had difficulties in honoring their financial commitments. This record, often, is seen as a warning sign by financial institutions, stores, and even employers.
How does defaulting occur?
Defaulting is not an instantaneous process. Before an individual is classified as a negative consumer, they usually receive notifications and have the opportunity to negotiate or pay off their debt. Only after exhausting attempts at an agreement is their name included in registries like SPC and Serasa.
What the law says about the negative consumer
Positive registration law
The positive registration is an attempt to balance the market’s view of the consumer. While defaulting focuses on debts, the Positive Registration highlights the financial commitments fulfilled, offering a broader and fairer view of the individual’s financial health.
Deadlines for defaulting
The legislation is clear: the consumer must be informed in advance about the imminent defaulting. Additionally, there is a time limit (usually 5 years) for the debt to remain registered, after which it must be automatically deleted.
Basic consumer rights
In addition to being informed, the consumer has the right to verify the veracity of the debt, contest improper records, and, if applicable, be compensated for moral and material damages resulting from an improper default.
How to protect your rights
Regularly check your status
The best defense is prevention. Regularly monitoring your financial situation and checking for pending or inconsistent issues can prevent unpleasant surprises.
How to contest improper default
When identifying an improper default, the consumer should contact the organization responsible for the record and present proof that the debt is nonexistent or has already been paid.
Seeking legal help
In more complicated situations, where direct negotiation does not resolve, the assistance of a specialized lawyer may be crucial to defend the consumer’s rights and seek compensation for any damages.
Negative consumer: consequences of defaulting
Credit impact
Defaulting does not only affect access to loans and financing. It can result in higher interest rates, difficulties in renting properties, and even rejections in job selection processes.
How to restore your credit reputation
Restoring financial reputation goes beyond paying off debts. It is necessary to restructure financial habits, avoid new debts, and, whenever possible, negotiate directly with creditors to find mutually beneficial solutions.
Defaulting is a challenge, but it is not the end of the line. With information, proactivity, and knowledge of your rights, it is possible to overcome this phase and regain control of your financial life.
