Brazil reports surge in condo debt protests and hidden credit‑record fraud

In 2025 Brazil saw a 569% jump in condominium debt protests filed at notary offices, with 100,815 documents recorded versus 15,071 in 2024. The monetary value of these debts rose from R$29.5 million to R$199.4 million, a 577% increase. About 35.7% of the entries were resolved through payment, settlement or cancellation, yet 61% remained unpaid, potentially restricting borrowers’ access to credit.

A separate investigation uncovered a scheme known as the “Limpa Nome” fraud, where more than 6,700 protest records in the state of Ceará – amounting to over R$52.8 million – were omitted from public credit‑check databases. The hidden entries affected 274 creditors and around 600 debtors, creating a false impression of financial regularity. Nationwide, roughly 2.9 million protests, totalising about R$62.1 billion, have been concealed from credit queries in the past five years. The National Council of Justice (CNJ) has introduced monitoring measures to track such removals and address the risks to market transparency and credit security.