Below is a translation of Brasilcon’s news update, our Brazilian partner of the Global Coalition for Responsible Credit.
Dear friend and associate of Brasilcon,
We inform you with satisfaction on the launch of the Handbook about overindebtedness, the result of a partnership between the Department of Consumer Protection and Defense (DPDC) and experts: Claudia Lima Marques, Clarissa Costa Lima and Karen Danilevicz, directors of Brasilcon.
To access the Manual on overindebtedness click here (or see attachment below).
Sincerely,
Valverde Hector Santana
President - Brasilcon
MJ launches handbook on over-indebtedness
Brasilia, 12/01/2010 (MJ) - The Department of Consumer Protection and Defense (DPDC) launched today in Brasilia during the 66th Meeting of the National Consumer Protection (SNDC), a manual the Prevention and Treatment of over-indebtedness. The work - a partnership between the experts and the DPDC Claudia Lima Marques, Clarissa Costa Lima and Karen Danilevicz, pioneering academic studies of over-indebtedness in the country - is the first in a series of scientific research on topics relevant to consumer protection.
According to the manual itself, the over-indebtedness can be defined as "the impossibility of global debtor-individual, consumer, and lay in good faith, pay all your debts current and future consumption (excluding debts with the IRS, derived of crimes and food) in a reasonable time with its current capacity of incomes and assets"
The theme is the more common in consumer protection. The facilities, ample access to credit, the massive growth in the supply of financial products and services in recent years led the DPDC, through the National School of Consumer Protection (ENDC), to discuss the implications of the indebtedness of the population.
"The goal of the manual is to encourage critical thinking on the subject, as well as showing the successful initiatives that are already used to solve the problem of the consumer. It is an issue that concerns us and that is on the radar of political structuring of ENDC, "said director of the department, Juliana Pereira.
It is estimated that in the past, the Brazilian market has absorbed at least thirty million new consumers. In 14 years, 22% of the population out of poverty and the power of the minimum wage increased by about 90% in a decade. Loans to individuals increased by eight times, according to the Brazilian Federation of Banks (Febraban), and now accounts for nearly half of all credit granted by the Brazilian financial system.
"Our work combines theory and practice to guide the Brazilian public policy around the problem that is seriously over-indebtedness," said Clarissa Costa Lima.
Other publications:
In addition to manual aimed at the over-indebtedness, were also released the Handbook of Consumer Law and Orientation Guide for Celiac. The Handbook of Consumer Law is in its third edition and has become a reference for the task of training the ENDC.
"This issue features a major innovation: individual cases of consumers. Hopefully the experience will enrich and extend the practical uses of the manual, contributing to the day-to-day consumer protection agencies in the country, "concludes the general coordinator of the Supervisory Control DPDC, Laura Schertel.
Already the Orientation Guide for Celiac is a publication aimed at consumers, more specifically for those with gluten sensitivity. The guide was developed in partnership with the National Federation of Associations of Celiac Brazil (Fenacelbra) and provides explanations about what is the disease, what symptoms, treatments, and gives examples of foods that contain no gluten and how to maintain a diet without the substance, including tips on food preparation. The ceremony was attended by the Minister of Justice, Luiz Paulo Barreto, and Secretary of Economic Law, Diego Faleck.
http://portal.mj.gov.br/data/Pages/MJ3DB528D3ITEMIDC24AD231CC6245C09AD6815514E2D603PTBRIE.htm
Prevention and treatment of overindebtedness (ENDC, 2010) – List of Contents
SUMMARY
INTRODUCTION ................................................. ................................ 7
PREFACE ................................................. ................................................ 9
PART I - THEORY .............................................. .................................. 13
1. Scientific Foundations of Prevention and Treatment of overindebtedness (Claudia Lima Marques).......... 15
1.1 What is "over-indebtedness" of the consumer and what that has to do with consumer credit, bankruptcy and freedom ?................. 17
1.2 Preventing over-indebtedness of individual consumers: consumption is equality and social inclusion, so the need for a special law... 24
1.3 Propositions on the treatment of over-indebtedness of individuals in consumer credit contracts, consumer credit and can also be a moment of solidarity and renegotiation in good faith ... 30
2. Explaining the over-indebtedness in Issues: Questions and Answers (Clarissa Costa Lima and Karen Bertoncello Danilevicz )........... 39
PART II - PRACTICE .............................................. .................................................. ...... 49
3. Project dealing with the situations of over-indebtedness of consumers (Clarissa Costa Lima and Karen Bertoncello Danilevicz)........ 51
3.1 Basics ............................................... .................................................. .................. 53
3.1.1 Reasons ............................................ .................................................. .......... 58
3.1.2 Procedure strictly ............................................ .................................................. 65 ..
3.2 Models: flowchart, templates, forms, letter of invitation, minutes of hearings and evaluation form……. 68
4. Conciliation applied to over-indebtedness: case studies
(Clarissa Costa Lima and Karen Bertoncello Danilevicz ).......................... 85
4.1 Stories of living heavily in debt ............................................. ........ 88
4.1.1 Dec difficult cases, "expecting twins," the doctor","collectors knocking on my door", “orange, "stubborn creditor”, "in the dark for over a year", "major step the legs", "paper night and day", “fear of the husband", "$30.00 for a family living"............ 88
4.1.2 Ten easy cases, "returning the kitchen" and "ensuring the Diploma", "paying for the drugs", "Unemployed and processed," "Father Goose and his two sons", ensuring the health, "the provisions", "taking the burden of consciousness", "learning the lesson: prioritizing".................. 100
4.1.3 Ten unusual cases: young, old, public and mixed case ......................... 112
4.2 What can go wrong: guidance, assistance, tips and dangers .................................. 123
4.2.1 Welcoming orientation and service .......................................... ..................................... 123
4.2.2 Audience renegotiation: Tips and dangers ........................................ ............................ 124
5. Statistics of over-indebtedness in southern Brazil: Profile, comparative results and main experiences with renegotiation (Clarissa Costa Lima and Karen Bertoncello Danilevicz) ... 127
Profile 5.1, key experiences and comparative results with the renegotiation
6. Conclusions (Clarissa Costa Lima and Karen Bertoncello Danilevicz) .................................... 139
REFERENCES ...................................................... 143
I - References ........................................................ 143
II - Official Documents and Reports ....................... 158
III - Notes and papers ............................................... 159
APPENDIX ................................................. ........................................................... 161
I - Primer Prevention overindebtedness ........................................... .................... 163
II - French Consumer Code: law in addressing situations of over-indebtedness .. 165.
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Dear friend and associate of Brasilcon,
Inform you that the SENATE committee appoints lawyers noted that the present draft bill to revise the Code of Consumer Protection. The committee will be chaired by the Minister and BENJAMIN HERMAN, he said, will focus on updating the law to the new credit market. Were also appointed as committee members in law doctors Grinover Ada Pellegrini , a lead author of the Law of Public Civil Action and co-chair of the committee responsible for the original draft of the CDC , Claudia Lima Marques , currently responsible for writing the CODCO Model of the Americas ; Leonardo Bessa , promoter of the Federal District financial services specialists , and Robert Pfeiffer , director of Procon -SP and former advisor to the Council for Economic Defense ( Cade).
They will prepare a proposal in about six months. To create it, the committee will hear specific sectors of society such as financial institutions, public defender , prosecution, judiciary and consumer protection agencies.
After a first draft, will be heard in society, through public hearings in major cities. The draft will be submitted to the Senate to finish the work.
For more information go to:
http://www.stj.jus.br/portal_stj/publicacao/engine.wsp?tmp.area=398&tmp.texto=100069
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Translated Text from link: 2.12.10
SPECIAL: CDC will focus on reform of the credit market, over-indebtedness and the strengthening of consumer protection agencies.
The reform of the Consumer Defense Code (CDC) will mainly focus on the consumer credit market and "over-indebtedness." The role of consumer protection agencies with alternative dispute resolution consumerista also be strengthened. The claims are the Minister Benjamin Herman, the Superior Court of Justice (STJ), appointed on Thursday (2) chairman of the Senate's lawyers will submit draft bill for revision of the CDC.
The minister attended the committee that drafted the original CDC in 1989, when he served as prosecutor. The minister said at the time of issue of the CDC, inflation and the banking system prevented the discussion of the topic. "It would be utopian to imagine a deal that was satisfactory to all parties with an inflation rate of 50% per month," he explained.
Today, the scenario is different. "After 20 years, Brazil need to upgrade your code, because the control of inflation and the expansion of consumer credit market, what mattered in 1990 to a small number of wealthy consumers, related today, directly to tens of millions of consumers that were incorporated into the credit market, "he said.
"There is no society without consumer credit and credit is absolutely necessary for the development of the country. But who takes credit to pay and be able to pay, "explained the minister. He says he does not even matter to the banks of the existence of consumers unable to pay debts.
It is therefore possible for a middle ground between freedom and credit rules that encourage responsible and conscious consumer credit. "These are the foundations of dialogue that we establish. We want to build a great deal of modernization of the CDC in the field of consumer credit, "said the minister Benjamin.
Judicialization consumption
"It is possible that each consumer dispute is taken to the Brazilian courts," criticized the minister. "This undermines the peace of the relations of consumption, which is absolutely fundamental to our financial institutions and the Brazilian consumer market place more a qualitative leap," he argued.
According to Benjamin Herman, reform is not intended to redefine the concepts of consumer or provider, for example. But it must incorporate the material already pacified by Brazilian law. "The richness and longevity of the CDC is due to the fact that a general law. There is a law to resolve the details of hundreds of contracts that exist in the market. It is the responsibility of the judiciary and the bodies of consumer protection, "said the minister.
One concern of the Ministry of Justice that the committee intends to incorporate is the strengthening of consumer protection agencies as a means of reducing litigation proceedings. In the Supreme Court, it is estimated that 20% to 30% of the resources of the Second Section - responsible for the adjudication of matters of private law - dealing with consumer relations.
"The reduction of litigation is done with the strengthening of the creative industries' own auto-regulatory mechanisms involved - as conciliation and mediation - and expansion of the consumer protection agencies to intervene in disputes," he said.
Vanguard
For the minister, the CDC is still avant-garde. First, because it is code. As Benjamin Herman, Brazil is the only country that treats the subject in essentially a single code, which aims to bring all matters that relate to the legal protection of the consumer. And many of their devices are still at the forefront.
"But a law is affiliated to his time. And when it comes to consumer society that is profoundly changing fast and there is always the need to seek - with caution - the development and updating of legislation to protect the consumer, "said the minister.
The chairman also noted that the CDC should not treat the regulation of financial services per se, but issues such as transparency and information or the right of repentance, in line with what is already done in other countries. Other topics may be revised, as electronic commerce, but the focus is on consumer credit and "over-indebtedness."
According to the minister in 20 years the CDC has not changed in order to reduce consumer rights and guarantees. On the other hand, influenced the Civil Procedure Code (CPC), the Civil Code (CC) and the proposed reform of the CPC in progress. "It Superinteressante, because normally the general law influences the special law. The CDC was a law so revolutionary, that influenced the CC. Several devices are now in the new CC came directly from the CDC, as the principle of good faith or the social contract, "said Minister Benjamin.
International
As the Minister Benjamin Herman, the work will be directed at ensuring basic rights of consumers are already recognized in other countries in the field of credit. "The consumer is happy - or less boring - your financial institution is a good deal. And financial institutions have a very strong international exposure, so it matters to them the existence of a regulatory framework as harmonious as possible in the various markets in which they operate. That goes for the foreign-funded banks in Brazil today and applies to Brazilian banks, which are expanding their international presence, "he said.
Among the countries that already deal specifically with the issue of consumer credit, are several that influenced the original edition of the CDC. In addition to the European directive issued in 2008, France, Sweden, Germany, Denmark, Finland, United States, Belgium and Austria have standards of consumer protection against "over-indebtedness and the credit market.
"We must be careful to avoid transplantation legislation. It is not because other countries have legislated that we simply copy. The CDC is a lasting success because the committee of jurists that prepared refused to simply copy the foreign law, and proposes the use of what was innovative, interesting and feasible in the Brazilian reality - but also being creative in proposing solutions that do not contained in the law of other countries, "reported the committee's chairman.
Hearings
The other committee members are doctors of law Grinover Ada Pellegrini, a lead author of the Law of Public Civil Action and co-chair of the committee responsible for the original draft of the CDC, Claudia Lima Marques, currently responsible for writing the CDC Model of the Americas; Leonardo Bessa, promoter of the Federal District financial services specialists, and Robert Pfeiffer, director of Procon-SP and former advisor to the Council for Economic Defense (Cade).
They will prepare a proposal in about six months. To create it, the committee will hear specific sectors of society such as financial institutions, public defender, prosecution, judiciary and consumer protection agencies. After a first draft, will be heard in society, through public hearings in major cities. The draft will be submitted to the Senate to finish the work.
"I believe the public has a right to participate directly in the drafting of a bill of this magnitude. Some may say: 'But this is a technical bill. " No matter! We are anxious to hear the problems. Our job is to find a legal remedy and legal problems that devastate both consumers and suppliers, "concluded the Minister Benjamin Herman. |
