Volume 1, Number 1
Changes
to Brazilian Consumer Credit Legislation
Brazilian Banking Law Consumer Defense Code for Bank Customers The Brazilian
Central Bank (BACEN) has recently issued Resolution nº 2.878/01,
which is already being called the "Consumer Defense Code for Banking
Clients" (CDCB). In force since July 26, 2001, this Resolution, in
short, rewrites in a more detailed manner and with added focus on the
financial market, the rights already stated in Law nº 8.078/90 (Brazilian
Consumer Defense Code CDC), related to transactions rendered to customers.
The most significant modification concerns the anticipated credit liquidation,
an unfavorable issue for consumers. CDCB, in its original form, allowed
the debtor the anticipated settlement of his debts with the financial
entity, with a proportional reduction of interest. With these modifications,
BACEN has restricted this privilege to clients who hold personal credit
and Direct Credit to the consumer. On the other hand, some modifications
are favorable to the consumers, such as the canceling of automatic accounts
debts, at the client's request. Supported by the original text, the financial
entities used to deny cancellation requests, arguing that cancellation
of direct debts needed to be authorized by the credit receiver companies.
Despite this specific regulation issued by BACEN, a client who feels damaged
by relations with the financial entity still holds the right to appeal
to court protection, supported by the Brazilian Consumer Defense Code
CDC.
Written by Aurelio Guzzoni,
resident partner of Noronha Advogados
at Los Angeles.
E-mail: AUR@noronhaadvogados.com.br
URL: www.noronhaadvogados.com.br
OTHER
STORIES
IN THIS ISSUE:
2003
Annual Spring Meeting: Farley and Bond, A Class Act
U.K. Insolvency Statistics
Show Increase in Failures
Developments
Under Mexico’s
Ley de Concursos Mercantiles del 2000
Brazil Eletronet to File for Bankruptcy
Brazilian Sovereign Debt Issuance Adopts Collective Action Clauses