Brazil: Bank Customer Will Have Protection Of A Specific Code

Last Updated: 30 August 2001

Article by Walter Douglas Stuber and Adriana M. Gödel Stuber

On July 26, 2001, the Brazilian Monetary Council (CMN) approved a resolution that establishes the rights and obligations in the relationship between consumers and financial institutions. It is the Bank Consumer Code. After an opinion poll and analysis of over 280 suggestions from individual and corporate consumers and other entities, the CMN determines, among other obligations, that banks are precluded from automatically transferring funds from common bank accounts or savings account to other investment account without the prior consent of account holder.

According to the Brazilian Central Bank’s Head of Rules, some of the information now required refers to circumstances under which documents or payments may be rejected, as well as the penalties account holders are subject to, liability for bad checks, closing of deposit accounts, earnings, rates, tariffs, fines and any other kinds of charge. The banks are also required to publish their customer service number.

Some of these measures are aimed at forcing banks to clearly show all contractual conditions of their relationship with customers and, consequently, making consumer relationships equitable at the National Financial System level.

The resolution also bans the fixing of dates for drafts. It additionally precludes operations known as operações casadas (combined operations), like, for instance, the opening of a current account conditioned upon the contracting of insurance.

The Resolution number 2878 provides that in the operations and services to their customers and general public, financial and other institutions authorized to operate by the Central Bank of Brazil, without prejudice of the compliance with the other existing legal and regulatory provisions in relation and applicable to the National Financial System, shall adopt measures that ensure the following: (i) – transparency in the contractual relationships to protect customers and user public from non-equitable practices by way of prior and full knowledge of contractual clauses, including liability and punishment provisions; (ii) – timely answer to inquiries, claims and requests for information by customers and user public, so as to rapidly and efficiently clear doubts about the services rendered and/or offered, as well as operations made or resulting from the advertising by the institution that involves specially: a) contractual clauses and conditions, b) operating features, c) discrepancies in the performance of services; (iii) – clear and user-friendly contracts to be entered into by customers containing the terms; amounts; interest and delinquency rates; administration and commissions fees; delinquent charges, fines for default and other conditions; (iv) – receipt by customers of copy, whether hardcopy or electronically, of contracts as soon as they are executed, as well as receipts, payment vouchers and other operation pertaining documentation; (v) – effective prevention and reparation of property damage and pain and suffering caused to their customers and users.

The institutions shall clearly indicate to their customers the contractual and other conditions resulting from the regulatory provisions, including the following: (i) – liability for bad checks; (ii) – circumstances under which customers will be listed on the Bad Check Register; (iii) – customer punishment; (iv) – charges of the institution, specially those related to: a) return of checks for lack of funds or other reasons, b) deposit account maintenance fee; (v) – charges for checks and other papers clearance services; (vi) – arrangements for the closing of deposit accounts, including establishment of deadlines; (vii) – earnings, rates, tariffs, commission fees, fines and any other charge resulting from the credit lines, overdraft contracts, and general services: The overdraft contracts, in addition to the provisions related to the agreed rights and obligations, shall contain the provisions on the renewal of both overdraft contracts and credit facilities, and termination with indication of terms, tariffs and arrangements to be taken by the contracting parties.

The institutions will carry through the information or advertising they disseminate by any way or means of communication, in relation to contracts, operations and services offered or rendered, which shall be included in the agreement to be entered into. The advertising shall be disseminated in a way that the public can easily and rapidly identify it. The institutions may not make deceptive or abusive misrepresentations. Any kind of information or communication inducing the customer or user into error with respect to the nature, features, risks, rates, commissions, tariffs or any other form of earnings, terms, taxation, and any other data relating to the contracts, operations or services offered or rendered is deceitful. Among others, advertising containing discrimination of any kind that injures the competition or characterizes imposition or coercion is abusive. Whenever necessary and upon request from customers or users, shall prove the truthfulness and accuracy of information disseminated or published thereby.

At the contracting of operations with their customers, the Institution shall ensure the right to accelerated satisfaction of debt, totally or partially, with pro rated reduction of interest rates. The institutions shall use terms that allow, in a unequivocal and clear fashion, the identification and understanding of operations carried out and clearly indicate the amount, date, place and kind, particularly in the following cases: (i) – tables of service charges; (ii) – contracts related to their operations with customers; (iii) – newsletters and deposit account statements of any kind, including by electronic means. In the performance of services resulting from agreements entered into with other entities by financial institutions, no discrimination between customers and non-customers in relation to hours and place of assistance is allowed.

No operation conditioned upon or connected to the making of other operations or the acquisition of other goods and services is allowed. Additionally, this prohibition applies additionally to promoted or offered products and services or any other situation that implies artificial increase of price or interest rates paid on the operation that customer is interested in. In the case of a transaction that, by operation of law, implies contracting of an additional transaction, the contracting party is ensured the right to freely choose the institution which he/she is willing to have such additional operation contracted with.

São Paulo, August 30, 2001.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions