Banco Central do Brasil head Ilan Goldfajn voiced opposition to a law that requires credit agencies to notify debtors receipt before including their names in defaulter lists, Valor Econômico reported.

The central bank chief reportedly said that he is working to have the law rescinded, but did not provide details on his efforts. The law took effect in the state of São Paulo in September 2015, and other Brazilian states are considering implementing it as well. However, credit research firms argue that the move would increase credit risks and costs.

"What is happening here is a huge economic imbalance. It can be said that the [country's] delinquency database for consultation has a hole today," Dirceu Gardel, legal director at credit firm Boa Vista was quoted as saying.

Between 6 million and 7 million defaulters couldn't be included in the database since the law took effect in São Paulo due to difficulties to have notices of receipt signed by debtors, Gardel reportedly said.