Brazil Central Bank introduces new credit regulations

The Central Bank of Brazil has announced three new measures designed to protect consumers from predatory credit offers and excessive indebtedness. These regulations aim to increase transparency and provide better financial oversight for citizens.

Starting March 31, 2027, financial institutions must provide a clear mechanism for customers to block active credit advertisements and offers. For vulnerable consumers, credit offers will require prior authorization and must focus on improving existing financial conditions—such as debt renegotiation or portability—rather than providing new funds.

Additionally, by July 1, 2027, banks must offer a consolidated debt dashboard. This tool will aggregate information on a customer's existing credit operations within that institution to improve visibility of their total debt. Future updates are expected to integrate data from the Credit Information System (SCR) and open finance ecosystems to provide a comprehensive view of a consumer's financial commitments.

These regulatory shifts come amid rising household debt in Brazil, which has reached 49.9% of disposable income. Recent data shows family delinquency rates in free credit at 8%, while credit card delinquency has hit 10%.