Bolsonaro approves law that changes positive credit registry without vetoes.

Brazil Agency - President Jair Bolsonaro today (8), in a ceremony at the Planalto Palace, sanctioned the new Positive Registry Law, which makes automatic the adhesion of consumers and companies to the database that has existed since 2011, but whose participation by clients was voluntary. The matter was approved by the National Congress last month.

The Positive Registry service is provided by specialized companies that assess the credit risk of companies and individuals based on their financial and business histories. Currently, this database contains information on approximately 6 million people. According to the government, the new law, which makes enrollment automatic, expects it to reach 130 million consumers.

In addition to the president, the ceremony was attended by the Ministers of Economy, Paulo Guedes, and of the General Secretariat of the Presidency, Floriano Peixoto. The Secretary of Productivity of the Ministry of Economy, Carlos da Costa, highlighted the scope of the new law, which should include millions of people currently outside the credit market.

"According to estimates, changes to the Positive Registry could benefit around 130 million people, including 22 million Brazilians who are currently outside the credit market, despite already having good credit history," he said.

According to the World Bank, the new law could reduce default rates in the country by up to 45%, which currently affect more than 60 million people, according to data presented by the secretary. Carlos da Costa also said that the expectation is that, in the coming years, around R$1 trillion in investments will be injected into the economy as a result of the Positive Registry, with approximately R$520 billion of this total going to small and medium-sized businesses alone.

Database
The text approved by Congress and now sanctioned included a provision that establishes that the liability of the database, information sources and consultants for damages caused to the registered user will be objective and joint and several, as provided for in the Consumer Protection Code.

The new law also establishes the requirement that database managers widely publicize the rules governing inclusion in the registry, in addition to the possibility and forms of prior cancellation.

The law also requires the Central Bank to submit to the National Congress, within 24 months, a report on the results achieved with the changes to the Positive Registry, with emphasis on the occurrence of a reduction or increase in interest rates.

Access to credit
According to the National Confederation of Retail Managers (CNDL) and SPC Brasil, the new Positive Credit Registry law should make access to credit easier and offer lower interest rates for consumers in good standing. According to CNDL president José César da Costa, the revised registry rules will improve credit analysis accuracy.

"The Positive Registry elevates Brazil to the ranks of first-world nations that already use the model, as well as the United States and the European Union. The new rules will primarily allow micro and small business owners to access information already used by large financial institutions, generating greater security in the credit granting process and stimulating competition in the provision of credit among fintechs, cooperatives, small financial institutions, and retail companies," he states.

Punctuation
With the Positive Registry, individuals and legal entities will have a credit score, a rating determined based on statistical analysis of payment habits, market relationships, and registration data. Only the credit score will be visible to those making inquiries. The registered user's payment history will only be made available with prior authorization.

Elements related to social origin, ethnicity, health, genetic information, gender, and political, religious, and philosophical beliefs will not be included in your payment history or score composition.