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Law 14.181/2021 was published today in the Federal Official Gazette
São Paulo, July 2, 2021: Law 14.181/2021, published today in the DOU, is a milestone for treating and preventing over-indebtedness in Brazil. In the Chamber of Deputies, this Bill was processed under the number 3.515/2015 and, in the Federal Senate, under the number 1.805/2021.
Data from credit bureaus point to around 63 million defaulters in the country, i.e. consumers with at least one outstanding bill or debt.
This figure can jeopardize the cash flow of companies, which miss out on payments, the performance of the economy as a whole, as well as borrowers. According to data from the Central Bank, household indebtedness rose from 49.4% in March 2020 to 57.7% in February 2021 - an increase of 8.3 percentage points.
The National Association of Credit Bureaus (ANBC), on behalf of the credit intelligence sector, points out that the legislation to prevent over-indebtedness increases transparency in relations between the consumer and the provider of credit services and solutions. He also highlights the relevance of the issue from the point of view of the financial education of the creditor, who is an important part of the equation. Financial institutions are creating a culture of risk assessment when granting credit, improving supply and reducing defaults. The whole credit chain wins.
"Credit is an important economic instrument through which families anticipate consumption, companies invest in future production and the economy expands. But there is a limit above which this instrument ceases to be healthy and can trigger, in addition to individual consequences, even economic crises," observes Elias Sfeir, president of ANBC.
Definitions of over-indebtedness vary from country to country. In Brazil over-indebtedness was defined as the situation in which consumers are unable to pay their consumer debts in full without compromising the minimum necessary for their existence, which shows attention to the social dimension of the issue.
And, because it believes that the new rules contribute to the effort to improve the credit environment in the country and spread the culture of financial education, the sector supported and contributed to their approval, which brings an advance in credit discipline in Brazil.
ANBC Press Relations
Regina Pimenta: (11) 98136.6835 regina@pimenta.com
Ana Carolina Rodrigues: (11) 98674.0348 anacarolina@pimenta.com
