Banks must introduce new debt negotiation rules

According to a publication published today on the website of FEBRABAN (Brazilian Federation of Banks), banks approved new rules for debt negotiation . They will be valid for consumers who are performing, that is, paying their bills, but with excessive debt. An editorial over at


Debt Negotiation

Debt Negotiation

With the decision, banks will follow new, standardized rules on debt negotiation in the case of consumers who are paying their bills but are heavily indebted. This should prevent the growth of the number of delinquents in the country, index that has been rising consecutively.

The rules were approved last Thursday, August 10, by the FEBRABAN Banking Self-Regulation Board. They should also contribute to increased transparency about the channels offered for debt negotiation, as well as facilitating access to information on debt evolution and time to remove the consumer name from the delinquent register, according to the institution.

The new debt negotiation rules will be effective 180 days from the date of their approval. Currently, 18 financial institutions participate in the Self-Regulation System and together represent 90% of the sector.


What changes?

loan payment

Banks will now have policies to monitor indebted consumers. In addition, they should take active and preventive measures to avoid default, and work on financial orientation actions.

In addition, special care is considered for cases where the indebted person is experiencing financial problems due to unemployment, serious illness, divorce or death. They will be offered specific proposals that will allow them to get out of debt through installments, early settlements or other available products.

The new rule, however, continues to respect each bank’s credit policy for debt negotiation. In addition, the sustainability of the agreement to be established should be considered so that it covers all existing debts wherever possible. When this is not possible, the client will then be given all information about which debts are being the object of the ongoing negotiation and which amounts will remain outstanding. In addition, you should receive an indication of how and in which channels you can negotiate these debts, as well as information on the consequences of non-payment.

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