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Brazil proposes bill supporting consumers with good credit history

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Brazil proposes bill supporting consumers with good credit history

The Brazilian government has sent a bill to Congress that proposes to support consumers with a good credit history to get better interest rates on loans or installment-based purchases, Diário Comércio Indústria & Serviços reported.

The bill is being expedited and is on the voting floor of the Senate, the report said. According to Banco Central do Brasil regulation director, Otavio Damaso, the bill seeks to correct the main obstacles preventing compliant lending in Brazil.

For instance, a proposal in the bill allows the automatic inclusion of consumers in the register of compliant debtors, reversing a rule under the current law in which the person or company must authorize the inclusion of his or her name in the register. According to Damaso, the current rule makes the process more time consuming and prevents the register from growing throughout Brazil.

Banking group Febraban said the default rate could decline by 45% if the bill is passed.