Brazil's Federal District passes stricter consumer debt protest regulations

The Legislative Chamber of the Federal District (CLDF) approved a bill that tightens the conditions under which utilities and other concessionaires may protest unpaid consumer bills in court. The measure requires a formal notice at least 30 days before any protest and bans the use of protest for debts less than 90 days overdue, for amounts below the national minimum wage, or when the debt is under administrative dispute.

Special safeguards apply to vulnerable consumers – those registered in CadÚnico, receiving the Continuous Benefit, on a social tariff, or earning up to half a minimum wage per person. For this group, a protest can only occur if the debt exceeds one minimum wage, is overdue by more than 180 days, and a repayment plan compatible with household income has been offered. The bill also mandates that notification include clear details of the debt, interest, penalties, and available negotiation channels. The proposal now awaits the governor’s sanction before becoming law.