Brazil’s Banks Start Providing Customer Data for Positive Credit Record

RIO DE JANEIRO, BRAZIL – It is expected that by next week, all Brazilians who have not chosen to be off the list will be included in the positive credit record.

A month ago, the Central Bank (BC) authorized four database management companies to operate. The records were provided to SERASA, the Credit Intelligence Manager (QUOD), Boa Vista and the National Confederation of Store Managers (CNDL – SPC Brasil).

Up to 30 days after data has been included, the relevant manager will notify clients that their data are included in the positive credit record. The notification can be sent by mail, e-mail or SMS. The procedure is similar to the one used to notify customers in the bad credit list.

In the first stage, banks and credit institutions will supply the positive record. In coming months, service providers with fixed charges, such as water, electricity, gas and telephone companies, will start forwarding the data. The record will be extended later to retail chains, which will share the customers’ payment history to the database.

Inversion

The Positive Credit Record, a list of good payers who can access cheaper credit, was introduced in 2013, but with an inverted logic in relation to the current one. Customers wishing to be included in the database were required to notify the bank.

The new legislation has made the incorporation and processing of customer data automatic.

Those unwilling to join the Positive Credit Record are required to notify their financial institution. Banks will identify good payers based on a scoring system, without having direct access to the client’s financial transactions.

Each customer will be rated between zero and one thousand. The higher the score, the better the payer and the lower the interest rates to which they will be entitled.

Approved by the National Monetary Council (CMN) in July, the regulation of management companies matches the processing of database management companies with that of financial institutions.

Monitoring officials and directors are required to have a clean record and to have their CVs assessed by the Central Bank.

Regarding data protection, the decree established security standards, such as separate boards of directors for the management of records and for data security and minimum net worth of R$100 million (US$25million) for each authorized company to operate.

Source: Agência Brasil

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