Brazil limits loan marketing to financially vulnerable customers
Brazil’s central bank has adopted safeguards against aggressive credit marketing, with stronger protections for financially vulnerable customers. The package gives consumers control over unsolicited offers and requires clearer information about their debts before a new loan. Rules also cover credit offered during Pix payments. Implementation is staggered between March and July 2027.
Economics & Markets··Evening
Customers gain control over unsolicited offers
Brazil’s central bank adopted three consumer-credit resolutions on October 23, covering loan marketing, debt information and offers made during Pix, the country’s instant-payment system. The package requires financial institutions to provide a clear way for customers to block advertising and unsolicited offers. Its stated purpose is to prevent unsuitable lending offers and excessive indebtedness.[1], [2]
The marketing rules take effect on March 31, 2027. Additional protections apply to people who are financially vulnerable or at risk of excessive borrowing. Institutions must assess disposable income, vulnerability linked to age or education, and persistent use of revolving credit or instalment repayment of card bills. Use in at least three billing periods within six months forms part of that assessment.[1]
Offers to vulnerable borrowers must improve existing terms
An offer to these customers requires advance permission and must exclusively improve their financial conditions, without providing additional funds. Permitted operations include renegotiating a debt, transferring it to another institution or moving to a more favourable product. Customers remain free to approach a bank, compare products and take out credit on their own initiative.[1]
From July 1, 2027, a consolidated debt dashboard must show customers their borrowing before another contract. Institutions must provide cost simulations, the effect on payment capacity and warnings of elevated risk. Initially the dashboard covers debt at the same institution. Credit-registry information and financial data shared with customer permission are to be incorporated later.[1]
Pix credit offers require consent and a waiting period
Rules for credit offers during Pix payments also begin on July 1, 2027. Users must first consent, with at least 24 hours between enabling the feature and receiving an initial offer. Consent can be withdrawn immediately. Offers above the original payment amount, or during scheduled payments, withdrawals and change functions, are prohibited. The recipient continues to receive the transfer instantly and in full. Brazil’s banking federation, Febraban, said transparency and protection against abusive practices contribute to a functioning credit market.[1]
