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Consumer credit and credit bureaus in Brazil: disclosure, responsible lending, over indebtedness and the positive registry

Last verified: 2026-10-27 · Status: Stable

Lending to Brazilian consumers comes with strict Consumer Code duties: full disclosure of the total effective cost, a 2 day valid offer, no claims that credit is granted without a bureau check, and a court process that lets over indebted individuals restructure debts with all creditors at once. Negative credit information can be kept for at most 5 years, while the positive registry (cadastro positivo) is opt out, can hold payment histories for 15 years and gives consumers free access to their score.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Maximum retention of negative credit information	5 yearsLei nº 8.078 art. 43 § 1, as of 2026-10-27 · in force
Maximum retention of positive payment information	15 yearsLei nº 12.414 art. 14, as of 2026-10-27 · in force
Positive registry consent model	Opt out (automatic inclusion with notice) Lei nº 12.414 art. 4, as of 2026-10-27 · in force
Minimum validity of a consumer credit offer	2 daysLei nº 8.078 art. 54-B III, as of 2026-10-27 · in force
Court restructuring for over indebted individuals	Yes Lei nº 8.078 art. 104-A, as of 2026-10-27 · in force

The rule

1. Consumers may access all data about them in registries and databases and their sources. Data must be objective, clear and true and cannot contain negative information older than five years; opening a file not requested by the consumer must be communicated in writing; corrections must be passed to recipients within 5 business days; and once collection of a debt is time barred, credit bureaus may not supply information that hinders new credit.Lei nº 8.078 of 11 September 1990 (Consumer Code), Art. 43 caput and §§ 1, 2, 3 and 5, 1990-09-11 official text · verified 2026-10-27

2. Before granting consumer credit or a sale on installments, the lender or intermediary must disclose the total effective cost and its components, the monthly effective rate, late interest and all late charges, the installments and an offer valid for at least 2 days, its name and address, and the right to prepay without penalty. The total effective cost is an annual percentage including all amounts charged.Lei nº 8.078, art. 54-B as added by Lei nº 14.181 of 1 July 2021, Art. 54-B caput, items I to V and §§ 1 and 2, 2021-07-01 official text · verified 2026-10-27

3. Credit offers may not say the loan can be granted without checking credit bureaus or the consumer's finances, hide costs and risks, pressure elderly, illiterate, ill or vulnerable consumers, or condition service on dropping lawsuits.Lei nº 8.078, art. 54-C as added by Lei nº 14.181/2021, Art. 54-C, items II to V, 2021-07-01 official text · verified 2026-10-27

4. An over indebted individual acting in good faith may ask the court to open a debt restructuring process with a conciliation hearing attended by all consumer creditors. Debts from secured credit, real estate finance and rural credit are excluded. A creditor that fails to attend without justification has its claim suspended, late charges interrupted and is bound by the payment plan, and the court approved plan works as an enforcement title.Lei nº 8.078, art. 104-A as added by Lei nº 14.181/2021, Art. 104-A caput and §§ 1 to 4, 2021-07-01 official text · verified 2026-10-27

5. Credit bureaus may open a file with payment (positive) information on individuals and companies without prior consent, but must notify the person within 30 days of opening it, free of charge, and may only share data with users 60 days after opening. The person may cancel or reopen the file at any time, access it and the credit score for free, and have errors corrected within 10 days in all databases that shared them. Positive information may not be kept for more than 15 years.Lei nº 12.414 of 9 June 2011, as amended by Lei Complementar nº 166 of 8 April 2019, Art. 4 caput, §§ 4 and 7; art. 5, items I to III; art. 14, 2019-04-08 official text · verified 2026-10-27 · changed: Lei Complementar nº 166/2019 (in force 91 days after publication on 9 April 2019) switched the positive registry from opt in to automatic inclusion with opt out.

6. The database, the source and the user are jointly and strictly liable for material and moral damages to the person under the Consumer Code.Lei nº 12.414, art. 16 as worded by Lei Complementar nº 166/2019, Art. 16, 2019-04-08 official text · verified 2026-10-27

7. Consumers have the right to port credit card and other post paid balances, including installment balances, to any authorized institution, and the original creditor may not charge for it.Lei nº 14.690 of 3 October 2023, Art. 27 §§ 1 and 2, 2023-10-03 official text · verified 2026-10-27

Worked example

Launching a consumer loan app. Each offer must show the annual total effective cost, the monthly rate, all late charges and remain valid for 2 days (Consumer Code art. 54-B). Marketing cannot say no credit check (art. 54-C II). A late installment of R$800 (US$150) can carry a fine of at most R$16 (2 percent, art. 52 § 1). The app may query the positive registry, but the borrower's file can only be shared 60 days after it was opened, and the borrower can opt out at any time (Lei nº 12.414 arts. 4 and 5).

Step by step

1. Get the right license first (bank, SCD, SEP or payment institution) or partner with a licensed lender.
2. Build disclosure templates with total effective cost, monthly rate and the 2 day validity.
3. Review marketing against art. 54-C, especially for elderly and vulnerable customers.
4. Contract with credit bureaus and set up processes for 10 day error corrections and cancellations.
5. Prepare for over indebtedness hearings: send representatives with full settlement powers, or be bound by the plan.

Common traps

Skipping the conciliation hearing. An absent creditor is bound by the plan and its claim stops accruing late charges (art. 104-A § 2).
Keeping old negative records. Negative data beyond 5 years, or after the debt is time barred, must not be supplied (art. 43 §§ 1 and 5).
Sharing new positive files too early. Data can only go to users 60 days after the file opens (Lei nº 12.414 art. 4 § 7).
Charging for card balance portability. The original creditor may not charge for it (Lei nº 14.690 art. 27 § 2).

Sources

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