According to CNDL (National Confederation of Shopkeepers) and SPC Brasil (Credit Protection Service), 48% of UK citizens started the year with the CPF (Cadastro de Individuales) compromised, due to negative overdue debts.
Negative debt, roughly speaking, is a debt registered with some national credit protection agency, such as SPC, SCPC and Serasa. In other words, the famous “dirty name”, in which the debtor's CPF or CNPJ (National Register of Legal Entities) will be charged in some credit transition. There is also the occurrence of negative debt in a notary, which is called a protest.
If you want some tips for developing efficient financial discipline and getting out of the debt cycle for good, we recommend this material here.
Having an active registration can have several consequences, so it is important to know how to reverse this situation. Follow the post and learn about the impacts of negative debts overdue and learn some tips to renegotiate them responsibly. Good reading!
What does it mean to have negative debts overdue?
It is increasingly common to find UK citizens who are financially tight. With the constant fluctuations in the economy, abusive interest and lack of awareness of spending, significant portion of consumers end up losing control of their finances and acquire debits on your CPF.
This is precisely what negative debts are due. O payment not carried out to any goods or services companies may compromise your legal registration, leading to the inclusion of your CPF or CNPJ the active default list of the country's main credit protection agencies.
This means that pending issues linked to these institutions can result in financial restrictions, social limitations and interruption of personal plans. Later on we will explore the main impacts of this debt situation.
To avoid negativity, it is important that the debtor seeks the creditor company to try to negotiate as soon as possible. After the 60-day period, if the payment is not made or the renegotiation is signed, the inclusion of the data in the SPC, SCPC, Serasa or equivalent is certain.
In addition, there is the possibility that this debt can be registered with a notary, configuring a situation of legal protest. Check out their particulars below.
What is the difference between Protest in Cartório and Negativação?
As we have seen, having a negative overdue debt means that the creditor company has entered the debtor's CPF or CNPJ in the active list of credit protection agencies.
This negativity can generate several problems, such as a complexity in obtaining other personal loan alternatives, the difficulty of making purchases in installments, the impediment of enrollment in private educational institutions, among others. The notification of the default situation is made by the credit bureaus themselves.
Regarding the protest, the procedure is a little more complicated. In addition to having dirty name, the debt is still registered by the creditor in a protest office. That is, the creditor person or legal entity notifies in court that a charge to which he is entitled to receive has not been paid within the time limit.
In this case, notification is given by means of a subpoena. As it is a division with the custody of documents of public faith, the transactions of the process are charged and are the responsibility of the debtor. In other words, in addition to the debt amount, you will still be charged charges.
And to be able to withdraw the protest, the debtor must pay the debt and pay the notary the costs related to the process, upon presentation of the letter of consent, to be issued by the creditor after payment of the outstanding debt.
What situations can generate negative debt past due?
Any overdue debt that has not been paid can cause a citizen to have a negative name. Below is a list of the most common situations.
- use of a bad check;
- store book late or unpaid;
- invoice from credit card late, unpaid or partially paid;
- unpaid loans;
- protested titles;
- unpaid taxes;
- child support is not paid.
Creditors are required by law to inform the customer about outstanding debts and propose agreements before negating their CPF or CNPJ.
How can negative debts overdue impact your life?
Having active registration on debtors' lists can bring more serious consequences than you think, follow some situations below.
With the CPF negative, the debtor has a dirty name in the market. That makes it difficult to obtain other forms of personal credit, such as loans, financing, credit cards, and so on. The debtor's score is harmed, further blocking this concession.
In other words, if other unforeseen events or financial emergencies arise, the debtor will be tied up because the approval of extra money by banks or lending institutions is restricted. In addition, having negative debts overdue prevents you from carrying out many projects, both professional and personal, due to the lack of financial security.
Some specific institutions offer the benefit of loan for negative, but interest rates pegged are scandalous due to the high risk attached to the service. This, consequently, raises the possibility of the debtor generating a new debt, even more critical.
Another situation that can occur is the sale of debt to credit recovery companies. In this case, banks or financial institutions transfer the responsibility for collection to credit bureaus in an attempt to accelerate the recovery process.
Even if the sale transfers the assignment, the debt maintains the same term to expire. However, the value may change due to interest, worsening the situation.
In addition, private educational institutions may prevent the student's re-enrollment process due to lack of payments, as agreed in the contract. In other words, negative debts that are overdue can still impair the intellectual development of the debtor or dependent.
For these and other issues, it is essential to have a financial planning strict to avoid indebtedness and depreciate its pecuniary health.
How long is the debtor's name tied to a negative debt?
According to the Consumer Protection Code, the maximum term for the collection of overdue debts denied in court or the insertion of the debtor's CPF or CNPJ in credit restriction bodies' registrations is 5 years.
Make no mistake, this does not mean that after that period the debt is forgiven and the debtor is free from the problem. Five years is the legal period in which the debtor's data may be linked to the lists of active debt of credit protection agencies. After this period, the CPF or CNPJ is released but the debt is maintained.
If the debtor's name remains in the negative state after a period of five years or is put back on the active list, the consumer must seek a trusted attorney to claim his rights.
When filing a lawsuit in the small claims court or in the public defender's office, he may demand the immediate exclusion of his registration and also, request an indemnity for moral damages.
How to reverse this situation and clear your name?
First of all, it is necessary to rebalance your financial situation in order to reverse the situation of negative debts overdue. This is because there is no point in arranging a new negotiation with creditors if you do not have sufficient conditions and resources to honor such agreements. The lack of further compliance can be even more damaging.
Having more adequate control of your budget, it is time to seek to regularize your situation. For this, it will be necessary to identify which companies have included it in the list of defaulters.
This is because the SPC, SCPC and Serasa, the most popular, are different credit protection agencies. So, it may be that your CPF or CNPJ is linked to only one or all of them. Inclusion is directly linked to the creditor company, which is why consultation on the official channels of the bureaus is a fundamental step.
That done, it's time to get in touch with the institutions in question and renegotiate debt. The traditional fairs promoted by Serasa and PROCON (Consumer Protection and Defense Program) are excellent opportunities to reach attractive agreements and reverse the situation.
Have the CPF or CNPJ in hand and present your real conditions of compliance; it is very likely that the value of the debt will be significantly reduced and with that, planning to honor it will be facilitated.
How to avoid new debts overdue?
In order to avoid that debts are a routine in your financial life, some precautions must be taken. Check out some tips:
- have a careful financial planning, know your income and your budget;
- write down all your expenses and organize them, know where your money goes;
- differentiate spending expenses to start saving;
- have the due dates of invoices and payment slips organized;
- place utility bills (electricity, water, telephone) and taxes (IPTU and IPVA) on automatic debit;
- do not have more than one credit card, and use it responsibly;
- pay the full credit card bill, avoiding the minimum payment;
- always try to pay in cash, have a plan for large purchases;
- buy only what you really need, always search for the best price;
- develop a discipline for making purchases, avoid waste and purchases superfluous;
- avoid having earnings yet to be confirmed;
- be wary of easy credit offers and financial pitfalls;
- create an emergency reserve;
- have financial goals and targets for your life;
- invest in financial education for you and your entire family.
Renegotiate debts and pay attention to new deadlines, as the efficient functioning of the agreement and its legal validity depends directly on the debtor client, it is essential that he honor the agreement and not delay payment.
Much more than bureaucracies, negative debts overdue can disrupt your financial life, compromising the well-being and safety of your entire family. So try to follow these tips presented in the post and avoid that this situation affects your reality.
With good planning and strict control of expenses, indebtedness will be eliminated once and for all and you can still save money to make special plans in the medium and long term.
Did you like it? Were you able to understand how to resolve a negative overdue debt? Tell us here in the comments if you still have any questions.