Do you know what the rights of the indebted consumer are? If you are one of the country 63 million delinquents, you need to know now – especially given the considerable increase in third party collection companies in recent years.
Considered credit recovery specialists, these organizations buy bank and financial debt at low cost to try to restore the amount owed. This is a lucrative business, but it has taken many actions to the small claims courts in Brazil.
This is because acquiring third-party debt often initiates a rampant search – by collections employees – for those who need to clear the name.
This extreme pressure for results is passed on to the consumer in the form of successive calls, coercion and offensive letters, exposing the indebted to vexatious situations.
But don’t worry, you can protect yourself from these abusive practices and even be compensated for any disruptions – often even more than the debt incurred. For this you need to know the rights of the indebted consumer. Shall we meet them?
What can the lender do?
Credit institutions have the right to notify the debtor for payment of the amount due and may enter their name in the delinquent records, such as the Credit Protection Service (SPC) and the Bank Service Centralization , on the first day. overdue obligation – resulting in the dreaded “name negation”.
More than that, the lender can also make the extrajudicial protest if there is title deed, or even take the appropriate lawsuit to perform the recovery. What he cannot do is expose the indebted to threats and moral or physical violence. Nor is it allowed to hold a document or asset to force the debt to be discharged.
An example is a customer who, with open installments at a dealership, came to the store to buy an accessory, but was prevented from removing the car from the store by order of the manager.
Imagine that the same manager damaged the vehicle by replacing parts on the grounds that the agreed amount was not paid. If such situations occur, the amount of indemnity for moral damages in court will probably reduce part of the debt.
What are the 5 indebted consumer rights?
It is a mistake to think that the indebted consumer has no rights. There are many legal requirements that must be met when dealing with delinquent clients. We explain below the 5 most important!
1. Notification prior to registration with agencies such as SPC or Terasa
There is nothing to discuss on this point, which is one of the indebted consumer rights already pacified by the courts. Precedent No. 359 of the Superior Court of Justice (STJ) is clear in stating that the consumer must be informed before having his name registered with the credit protection agencies.
An important detail is that the legal understanding attests that the responsibility for providing information, in this case, does not lie with the creditor, but with the registration companies themselves (SPC and Terasa). Failure to comply with results in an action for reparation for moral damages on the database holder company.
2. Receiving Clear Trading Information
Letters of charge, out-of-court communications and any other documents of the creditor must present the debts to be settled transparently. Fines and corrections and interest should be detailed and, if inaccurate data are available, an attorney may be called to temporarily suspend debt execution.
3. Freedom to reject proposal
The consumer is not required to accept the lender’s renegotiation proposal. If the installments are beyond their ability to repay, for example, the indebted person has the right to make a counterproposal – provided the terms are realistic and feasible. You can claim lower interest, longer repayment terms, or a cash discount.
4. Limitation of assets to be pledged
Food allowances (such as salaries, retirement income and pensions) are unenforceable. This is so that the execution of a debt does not affect the human dignity or the livelihood of the debtor and his family. See what the Code of Civil Procedure says.
“Art. 833. The following are not enforceable:
IV – salaries, allowances, wages, salaries, remuneration, retirement income, pensions, salaries and mounds, as well as amounts received by third parties for the maintenance of the debtor and his family. , the self-employed earnings and the fees of the self-employed, subject to paragraph 2. ”
Following this same logic, if it is the only property in the family, the residence can not be auctioned, as well as household utilities acquired before the debt (Federal Law No. 8.009 / 1990).
5. A dignified and respectful approach
It is the debtor’s right not to be humiliated or embarrassed. Billing letters may not have external identification denouncing the default notice; schools cannot prevent indebted students from attending classes; Likewise, condominium slips cannot nominally disclose debtor apartments.
These indebted consumer rights are established by the Consumer Protection Code (CDC), in its article 42.
What points require attention to debt renegotiation?
Now that you know your rights as a debt consumer, check out some practical tips for clearing your name and getting out of debt!
Define your trading strategy
What are the priority debts to be renegotiated? What fits in your pocket: more installments or lower interest? All of this must be studied before sitting at the negotiating table. Contract clauses, in particular, should be thoroughly analyzed in order to seek loopholes to facilitate mutual adjustment.
Attend trading fairs
Have you heard of Feirão Clean Name? In addition to knowing the rights of the indebted consumer, one must be aware of the opportunities to pay off debts at special events on the subject, in which participating creditors even offer discounts of up to 90%.
In 2018, for example, Terasa Exporian organized such as trade fair, resulting in an impressive 1 million deals and $ 460 million in discounts.
Essential consumer debts (such as water, electricity, and gas) should take other debts ahead of their potential disruption. Alimony with child support also needs urgent discharge, considering that the arrest request can be determined by the judge with only 1 month late – the penalty varies from 1 to 3 months.
Swap expensive debt for cheaper debt
Taking a single loan with a lower interest rate is more interesting than keeping multiple late payments with high and varying interest rates.
If you decide to make this switch during your financial organization project, the key tip is to take advantage of the cash in hand to ask for a good discount on the repayment of older debts and lengthen the repayment term of the latest debts.
Who should you turn to?
If the consumer feels assaulted by any lender, they should initially file an incident report. All calls need to be listed with day and time information and, if possible, recorded.
You can then file a claim with Procon in a penultimate step before filing a claim for damages. In this claim, compensation will be required for all damages suffered by abusive charges.
Is it clear how even in debt you have your rights and should claim them? By applying our tips, you can get rid of undue annoyances and still negotiate your debts more fairly!
We guarantee that you have come here much more aware of the rights of the indebted consumer than before reading. But you can go further by learning in practice how to make and use an efficient financial control spreadsheet! Click and check it out!