Unfortunately, the number of people who are in default in Brazil is very high, isn't it? Despite this, did you know that financial companies must comply with some consumer rights for negatives? Yeah, it's not just consumers who fulfill rights.

The consequence of default is due to the fact that debts are not paid due to unemployment or lack of financial planning. When this happens, the credit restriction bodies insert the negative consumer's name into their database. With that, he is prevented from making installment purchases.

Those responsible for these bodies are the Credit Protection Service (SPC), Central Credit Protection Service (SCPC) and Serasa. The main differences between these bodies are the different institutions from which they pull consumer data for analysis. 

Many consumers have questions regarding credit approval. Therefore, below, we highlight the main questions about consumer rights for negatives.

Before financial institutions put the names of negatives on the list, they need to take other measures. First, you should know that you need to take care of this even to prevent the consumer's score from unduly lowering. With that, the consequence will be the decrease of its purchasing power in the market.

Unfortunately, when there is a financial commitment for a long period of time, there may be several factors that make you unable to finish paying off the installments and meeting the deadline.

Therefore, according to the Consumer Defense Code, financial institutions must take some strict measures before actually putting the consumer's name in protest. 

If the consumer's rights for negatives are disrespected, the financial institution may be penalized.

Next, we highlight the four main rights that every customer should know before having their name effectively added to the credit disapproval list.

It is the responsibility of the institution to warn the consumer that his name is at risk of being “dirty in the square”. For this, the company must send a notification to the customer. This notification can be sent by email, mail or telephone contact.

There should be information that the customer's name will be negative soon. In addition, the notice must contain deadlines for the debt to be paid off in an amicable manner. 

Normally, the protest begins when the boleto is delayed for a period of 90 days or more. However, the notification can already be sent by the financial institution if the bill is pending discharge for a period of 30 days or even earlier.

In addition, the negation of the customer's name can still happen if there are errors in the system. In this case, the notification ends up becoming the period in which the consumer has to notify the financial institution that, at the time, there is an undue default charge. 

On the other hand, if the consumer's debt has actually been owed and the outstanding amount is not settled by the deadline proposed by the financial agency, the creditor company must "dirty" the debtor's name.

This can also happen when the deadline for friendly negotiation has ended and the consumer has not expressed interest in paying the bill.

In addition, if the financial institution with which the consumer has a pending issue sends the consumer's name to the SPC without due notice, there may be consequences for it. 

One of the personalities may be the payment of compensation for moral and material damages to the consumer for non-compliance with the law.

Therefore, we emphasize that this is one of the most important consumer rights for negatives.

When the consumer realizes that his name has been improperly denied, he must seek the bodies responsible for consumer law. With the help of a lawyer, the consumer will have his name regularized. 

It is worth noting that each case will be analyzed individually and measures will be taken accordingly.

It is also worth remembering that after realizing the error, or after the defaulter negotiates the debt, the name must be “cleared” within a period of five to ten business days.

In addition, the consumer who has made the payment that was not written off in the system, may request compensation. Under the law, the consumer will receive an amount for moral and material damages in order to alleviate the inconvenience suffered due to the error.

The injunction request will be made through a lawyer. All the inconvenience that the client suffered after having the name improperly negative will be taken into account.

Based on this, the authorities will decide on a fair amount of compensation for the customer. Remembering that each case is individual and the consumer can be compensated for the error, as well as the opposite. But, it is important to know that this issue is part of the consumer's rights for negatives.

Financial companies may incur extra costs if they fail to correct consumer data immediately. The penalty can be from one to six months of detention or a fine.

In addition, the financial institution that makes it difficult for consumers to access data is also infringing the law and will be subject to penalties.

To prevent this from happening, it is important that creditor bodies are aware of consumer rights for negatives. In addition, they need to value the quality and well-being of customers. 

For filing issues, the consumer has a deadline for the request to be made. One of the reasons for this is the action for material and moral damages as a result of improperly adding to the SPC and Serasa. 

In addition, the period stipulated by law is three years from the prior notice. However, if the consumer lets this three-year period pass, nothing else can be done. 

When the consumer has a debt that has not been paid for more than 90 days, his name goes into a database. According to consumer rights for negatives, where the customer's name will be restricted for five years.

The consequence of this is that the consumer score will decrease. In addition to preventing the debtor from being approved in case of filing requests to make installment purchases.

However, when the consumer already has the name inserted in the SPC and/or Serasa, the practices are different. For comparison purposes, the aggravating factor occurs if the “clean name” has become “dirty” due to technical failures. In addition, the buyer may have his name restricted for reasons of having been a victim of fraud.

In this case, it is common for the financial institution to remove the customer's data from the negative list. However, this does not mean that the consumer will receive compensation for having suffered inconvenience due to the restriction. 

As the negation had already occurred, the law understands that there was no suffering from the disorder. For this, the financial institution needs to solve the problem quickly and without inconvenience.

One of the very common points of undue negativity is when the financial company does not cancel the payment. That is, the consumer pays the negotiated debt, but in the system it still appears as pending, even after the stipulated period.

According to the Consumer Protection Code, the deadline for the consumer's name to be "clean" again is five working days. What should be accounted for after payment of the first installment of the agreement. 

However, there may be errors in the system and your name is still restricted even after negotiating the debt. To resolve this, the consumer must contact the finance company and ask for the reduction of outstanding installments. 

In addition, the customer must present proof of payment to proceed with the process. The withdrawal of the restriction must be done within the period established by law – five working days.

The new negative result causes the consumer to be disapproved of new requests for credit analysis. Also, he has the score, which is the score that measures his financial health, lower.

As previously stated, the consumer may have had an improperly increased debt to credit protection agencies. But it does not necessarily indicate that he will receive compensation. 

Cases will always be analyzed individually with the presence of a lawyer. From there, the best path will be analyzed through the law and the situation that occurred. That is, you need to understand this issue, as it is part of the consumer's rights for negatives.

Debts that remain unpaid or negotiated for more than five years cannot prevent the consumer from obtaining financing. This also applies to approval of credit cards or even the release of credit cards in the market. 

However, the institution in which the consumer has the debt may leave the pendency registered. Despite this, not for negation purposes, that is, you cannot negate the name of the consumer for purchases.

In view of this, to ensure good financial health, it is necessary that even after five years, the consumer negotiates the debts. For this, the customer must contact the financial institution and negotiate according to their financial conditions.

The positive point is that, due to the delay period, the financial company is able to give the customer a good discount. 

As stated in the previous topics, what should be done if you realize that your name has ended up improperly with credit protection bodies is to notify the financial institution.

In addition, if you have made any inappropriate payments, this amount must be returned to the customer. In situations where the consumer requests a credit from financial agencies and finds out at this moment that his name is restricted, he can file a lawsuit asking for compensation for moral and/or material damages. 

For the progress of this process, the help of a lawyer will become necessary. This professional will carry out the negotiation and point out the best ways for the client's problem to be solved.

In view of all this, the institutions that provide the credit also have consumer rights for negatives to be fulfilled. Therefore, it is extremely important that the consumer is aware of all their rights. 

Therefore, the debtor will prevent any inconvenience related to the insertion of the name in the negative list from occurring. In addition, you will know where to turn if you have consumer rights for non-compliance with negatives.