Why should my company adhere to the Positive Registration Law?

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After being enacted, the Positive Registry Law aroused the curiosity of individuals and legal entities. The measure promises to transform the way consumers access credit, especially those who already have a negative credit history or are low-income.



From now on, all institutions that grant credit, sell on credit or carry out commercial transactions with financial risk must send information about their customers to the Database Managers.



How does the Positive Registration Law work?
The Positive Registry Law works as a kind of “financial resume” for individuals and overseas chinese in australia data entities. Its main objective is to recognize consumers who are good payers.



Contrary to what many people think, the Positive Registry is not new. It was created in 2011 and has been active since 2013, despite low adoption. With the approval of the Law in April 2019, information about all citizens will be automatically incorporated into the system. Consumers who do not wish to share their data may request that their name be removed.



Banks and companies are responsible for including data on the list of “good payers”, which will occur without prior authorization. This already happens in the negative registry, that is, in the list of defaulters.



What changes with the Positive Registration Law?
From now on, consumers will have a negative and a positive credit score. Those who keep their financial commitments up to date will have a higher score.



In an article published on the Central Bank's news portal , João André Pereira, head of the Financial System Regulation Department, stated: “ The measure will especially benefit the lower-income population, who do not have real estate, for example, to offer as collateral when taking out loans. These citizens will have their good payment history as an indication that they do not represent a risk to the institution. Stores and financial institutions will compete for good payers.”



The Positive Registry Law may also help consumers who currently have bad credit , since their credit score will increase as their debts are paid off. Another group that will benefit are citizens who have never had access to credit . In this context, the Positive Registry will be built based on the timely payment of water, energy and telephone bills. For many people, the Positive Registry is a symbol of democratization.



In practice, the credit analysis and granting processes adopted by institutions will have to be reviewed in order to offer consumers payment conditions that are more compatible with their profile.

Learn more about this subject. Understand how the Positive Registry works.



Main changes between the complementary laws:
Before it was approved, the Positive Registry Law required consultants to obtain prior authorization to access data. Adherence was voluntary. Credit bureaus did not need to register activity with the Central Bank, and had access to detailed consumer payment information. This data, in turn, could be shared with stores and financial institutions, and it was the GBDs that were responsible for any damages caused by the consultant.



Today, the Positive Registry Law provides for the automatic inclusion of all individuals and legal entities in the list. The GBDs are responsible for the administration and security of the database, and must approve a secure system to manage the information. This, in turn, will only be accessed with authorization and the users will have to pay for any damages caused. For the consumer, this represents greater care and protection.