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 Mondaq.com.

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”

Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
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
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.