The Positive Registry, instituted by Law No. 12,414/2011, amended by Complementary Law No. 166/2019 and regulated on July 24, 2019 by Decree No. 9,936/19, is a database with information on the credit and financial obligations, paid off or in progress, of individuals and companies.

The Cadastro Positivo brings together a consumer's credit history, such as: financing, credit cards, loans with banks, commerce and other monthly bills, such as water, electricity and telephone. It allows companies that grant credit to make an individual and more accurate assessment of each consumer's credit history. In this way, they can identify good payers who are looking for credit and therefore deserve to have access to it. The logic is simple: less interest on loans and financing for those who offer it and less risk of default.

Once the new format, established by complementary law no. 166/2019, comes into force, consumers will be able to have a credit score calculated that is more comprehensive than the previous model, as it includes, for example, water, electricity and telephone bills. With this score, it is hoped that those registered who are good payers will be able to claim lower interest rates and that companies will be able to grant this reduction, because they will be able to make a more accurate financial risk analysis and with a greater likelihood of default. The new Cadastro Positivo model is also known as "opt-out", which means that consumers join automatically and can choose to cancel their membership.

The credit rating, a score generally from zero to one thousand given to each consumer, is the result of an analysis of the payment habits and relationship of groups of consumers with the market. It is thus equivalent to a financial resume: the higher the score, the more likely it is that that group of consumers will honor their financial commitments on time. The credit score is the first level of information offered to the market about the consumer in possible business deals or credit concessions and can be used to negotiate lower interest rates.

Settling overdue debts that have put a consumer's name in bad standing is essential to increasing their score. Avoiding late payment of bills such as invoices and boletos is also essential. The Cadastro Positivo benefits those who keep their payments on time.

Yes. Credit protection databases are responsible for the security of the information they store. The Cadastro Positivo legislation only allows the storage of information that is relevant to the credit analysis of the registered consumer, expressly prohibiting the use of sensitive or excessive information. The information stored will be used to draw up credit scores, and consultation of the complete history by third parties will depend on the consumer's authorization, provided that they maintain or intend to maintain a commercial or credit relationship with the registered consumer and respect the purposes set out in the law for the use of the information. The consumer's privacy is therefore maintained and deviations from this procedure are subject to penalties.

Even those with a negative name can join the Positive Register, because the positive database takes into account the history of obligations paid or in progress and not just any delays or non-payment. Consumers will be able to see this when negotiating an installment purchase, a loan or a mortgage.

Sanctioned by the President of the Republic on April 8, the new Positive Registry was published in the Official Gazette on April 9 and comes into force 91 days after publication.

The timing or even whether or not the consumer's credit risk assessment will change with the inclusion of positive information will vary from case to case. These changes depend on the amount of information received, its relevance in relation to the information already considered in the databases, whether the new information indicates a greater likelihood of default or not, among other factors. In the case of a consumer whose lack of information negatively impacts their credit score, for example, the inclusion of payment information can have an immediate impact on the score calculation. The time it takes for the market to feel the impacts of the new Positive Registry may also vary, but there is potential for the Positive Registry to bring benefits to the market from the moment it comes into force. The Central Bank will carry out an evaluation 24 months after the law's publication to generate a report on the results achieved with the changes to the Positive Registry.

The new Cadastro Positivo model has many advantages, but in particular, it will enable the financial inclusion of many Brazilians who today do not have access to credit, loans and financing because they do not have proven income, but who pay their obligations on time and will be able to show this to the financial system through the Cadastro Positivo. For those who already have access to credit, the new model could expand supply and reduce interest rates. The new scenario could lead to increased competition, with the entry of competitors with new products and services, and a reduction in defaults, which could lead to fairer interest rates.

The credit bureaus that manage the Cadastro Positivo databases, such as Boa Vista, Quod, Serasa Experian, SPC Brasil and TransUnion, will receive the information from the Sources, which are the companies that carry out business and credit operations with consumers and companies. The credit bureaus will be able to use the positive information to compose the consumer's credit score and will be able to make it available to consulting individuals or companies (e.g. retailers, financial institutions and banks) that have a commercial relationship or are evaluating granting credit or commercial transactions to the registered person. Consultation of the Cadastro Positivo's complete history will depend on the consumer's authorization.

Individuals or legal entities that grant credit, manage self-financing operations or carry out installment sales or other commercial and business transactions that involve financial risk, such as financial institutions, finance companies and providers of ongoing services such as telecommunications, sanitation, energy and gas, for example, must send data to the Positive Register.

This will include credit information, such as loans, invoices, financing and credit. In addition, consumer bills such as water, gas, electricity and telephone will also be used in the Positive Register. Information on goods purchased is not included in the report, only the total amount and the installments of the payment obligation with the respective start and due dates are taken into account, as well as information confirming that the obligation has been paid and the date of payment.

Any individual or legal entity registered in the Positive Registry can consult all the information held on them in the databases. Access, which is free of charge, can be requested from credit bureaus such as Boa Vista, Quod, Serasa Experian, SPC Brasil and TransUnion. This request can be made through any of the service channels provided by the bureaus (e.g. in person or electronically), and can be answered within ten days of the request.

No. When the new model comes into force, once one of the database managers has opened the Positive Register for a given individual, the others will also be authorized to do so, without the need for further communication to the registrant.

The registered person can ask any credit bureau or data source to correct any information about them that has been wrongly entered in the databases. The information must be corrected within 10 days of the request.

Consumers who wish to remove their name from the Positive Register can do so at any time, simply by formally requesting their exclusion from the service channels of any credit bureau. The credit bureau that receives the request for exclusion from the Positive Register is obliged to respond to it and share it with the other bureaus so that they can also respond to it, within 2 working days. Click here to find out how to cancel your positive registration.

If the consumer or company already has an open Positive Record, the record will remain active and the credit history information will continue to be stored and shared as normal. As they have already consented to the use of this information, no new communication will be necessary.

If the registrant eventually requests to be removed from the Positive Register, the database will no longer receive any positive information about them and, consequently, the companies that are going to grant them credit may have access to less information, checking only whether or not they have any negative debts, for example. As a result, the company may be more likely to refuse or grant you credit at higher interest rates, as it may have insufficient information for financial risk analysis or only have access to the bills you have failed to pay.

Consumers or companies can express their wish not to be included in the Positive Register even before they receive the notice that their registration has been opened. If the consumer or company has already received notice of the opening of the register and does not want their data to remain in the Positive Register, they can simply ask to have it removed at any time. All credit bureaus must inform you of the channels available for requesting cancellation of the register, free of charge. When a database manager requests cancellation, he or she must inform the other managers of the consumer's decision not to participate in the Cadastro Positivo.

The purpose of the Positive Register is to benefit consumers who have a good credit history, so that they have access to fairer rates and better conditions when applying for loans or financing goods. That's why it's important to keep your payments up to date so that the inclusion of positive information can benefit your credit risk analysis for the market.