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March 01, 2019

Cybersecurity and Data Privacy – Bill of Law that alters the rules of Positive Enrollments awaits the Senate decision

Cybersecurity & Data Privacy

On February 20, 2019 the Chamber of Deputies concluded the voting of the bill of law that turns automatic the registration to positive credit enrollments, and rejected of all the amendments filed by parliamentarians who were against the original wording. The modifications that intended to change specific aspects of the text were also deliberated.

According to the bill of law, consumers will be automatically included in the positive credit enrollments, which will indicate who pays tickets and invoices on due date – and, therefore, deserves smaller interest rate on loans –, and those who tend to default on payments, and, therefore, would have higher interest rates when borrowing money. From the Central Bank perspective, this would reduce the bank spread.

The bill of law had more than 10 amendments. The deputies that opposed to the amendment argued that the proposed system compromises consumers' bank secrecy and privileges banks, because banks that would be capable of selecting “good payers” and increasing the interest rates on defaulters, who usually belong to poorer sectors of population.

Currently, the customers choose to be registered in the positive enrollments.

The bill of law determines that the enrollments would be automatic, and customers would have to request their removal from the databases. Once the registration is enrolled, the credit bureaus would have to notify customers, which would have 30 days to refuse the registration. The communication to one credit manager should suffice so that the other credit managers are notified and the registration is automatically removed from all databases.

The bill of law moves to the Senate, which shall decide on the amendments made by deputies.

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