Credit Protection: How Do They Work?


What are and how do credit protection agencies work in Brazil? Do you know what a credit protection agency? They are private companies that perform the maintenance of registries with commercial information of people and companies, with registries of default (bad payers). These records are used as a benchmark by other institutions when it comes to conducting any kind of analysis of personal lines of credit, loans and financing in order to have more assurance that the person receiving the financial resources and services will honor with the payments.

Credit protection agencies 

Credit protection agencies 

The best known credit protection agencies are the Credit Protection Service (SPC) and SERASA – Serasa Experian, which were created as a way to protect credit operations and reduce the risk of default in the commercial and service segments.

The information that makes up the records maintained by these bodies comes mainly from entities such as the Chambers of Tenants and Commercial Associations.

Nowadays, when anyone applying for a loan, loan or any term purchase, it is common for these bodies to be consulted in advance by the credit provider. If you have the name present in some credit protection agency it can be difficult to get financial credit to carry out the acquisition of any kind of good.

But, did you know that the time for a person to be denied (popularly said to have a “dirty name”) is limited? The CDC – Code of Consumer Protection predicts that the maximum time a person can be denied is 5 years. This means that after 5 years, with the debt being paid or not, the consumer’s name must be removed from the credit protection records.

If your name appears in any of these records even after you have paid off the debt that caused your name to end there, you have two actions to take: you can go to the store, financial or another company where you had the debt , and require the correction of the cadastre; or you go directly to the entity responsible for credit protection and place the order.

The entities that work with the credit protection service should be seen as allies and not as enemies of people and companies, as they guarantee a more stable economy, reducing the risks of so-called default. Avoid as much as your name goes to one of these records, pay your bills on time and if you can not avoid a debt, do what you can to get it off as soon as possible.


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