Brazil: Courts penalize abusive WhatsApp debt collection

In Brazil, the judiciary is increasingly condemning financial institutions for abusive debt collection practices via WhatsApp. Courts have ruled that repeatedly messaging consumers to collect debts that have already been settled constitutes an illicit act that violates privacy and consumer rights, often resulting in mandates for moral damages.

Legal experts emphasize that companies have a duty to maintain updated records. When a bank continues to pursue a debt after a legal collection action has been dismissed or the debt has been paid, it is viewed as serious negligence. Consumers are advised to document these instances using screenshots of messages with visible dates and times to support legal claims.

Separately, there is a distinction between settling a debt and “clearing one’s name” in credit bureaus like Serasa and SPC. While paying a debt fulfills a financial obligation, the removal of negative records from credit databases is subject to specific legal timelines and rules. Clearing a name involves ensuring that all negative entries associated with a CPF are removed according to consumer protection legislation.