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As you all know, the new Cadastro Positivo model has been approved. Complementary Law 166/2019, which amended Ordinary Law 12.414 of 2011, was sanctioned by the President of the Republic, Jair Bolsonaro, on April 8. It was published in the Federal Official Gazette the following day.

In the run-up to its entry into force, which will take place 91 days after publication, credit bureaus are continuing their initiatives to meet the requirements of the new law. They are also committed to communicating all these changes to individuals and companies. After all, consumers and companies must be sufficiently informed in order to take advantage of all the benefits of the new Register.

First of all, it is important to clarify that all those already entered in the Register will remain in it, since they have given their authorization for the information to be used. The register will remain active, and payment history information will continue to be stored.

I would also like to point out that, although inclusion is automatic in the new CP model, consumers and companies can request the removal of their data at any time. The option to withdraw information is legitimate and is provided for in the legislation. And this choice can be requested from any of the credit bureaus.

Withdrawal from the Register will mean that credit granting institutions will have access to less information about the consumer or the company that collected their personal data. Therefore, when assessing the possibility of granting loans and financing, these institutions will only be able to see the bills that have not been paid. The decision to grant credit will be made on the basis of this information, and can be positive or negative.

Speaking of unpaid bills, even those with a negative credit rating can join the Register. This is because the positive database takes into account the history of honored obligations.

In the new CP, the consumer's and company's credit rating will be based on a more comprehensive payment history than in the previous model, since it will include, for example, water, electricity, telephone and gas bills. This is precisely where the main advantage lies for those who choose to keep their data in the CP. As credit granting companies will have more information, including default information, on the payment history of each individual and company, they will be able to offer credit at fairer interest rates. Good payers will therefore benefit from advantageous loan and financing conditions.

And who will send information about individuals and companies to the new CP? Only individuals and companies that grant credit, manage self-financing operations or carry out installment sales or other commercial and business transactions that involve financial risk will be able to do this. This means, for example, banks, financial institutions and providers of ongoing services such as telecommunications, water, electricity and gas.

Like the old model, the new one prioritizes data protection and follows the banking secrecy law (105/2001) to the letter. Only credit behavior information will be used, which means not exposing the privacy of individuals and companies.

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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor