Portugal's Central Bank Issues Guidance for Borrowers Facing Credit Difficulties

The Bank of Portugal advises consumers who struggle to meet loan payments to act early. Borrowers should immediately inform their lender, consider the Procedimento Extrajudicial de Regularização de Situações de Incumprimento (PERSI) for negotiating terms, cooperate fully with the bank’s requests, and can obtain free assistance from the Rede de Apoio ao Cliente Bancário (RACE). Prompt action helps avoid penalties such as late‑payment interest, commission fees, and costly legal actions.

In Brazil, the Central Bank’s credit‑portability scheme lets borrowers transfer existing debt to another financial institution offering lower interest rates. The process requires obtaining a detailed balance statement, negotiating with a new lender, and having the new lender settle the original loan. The mechanism, regulated by Resolution 4.292/2013, can significantly reduce monthly payments and total cost, as illustrated by a simulated mortgage where a rate drop from 11.5% to 9.2% could save roughly R$108,000 over the loan’s remaining term.