Negative Registration of Defaulters: Which documents can be used?

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In scenarios of economic instability, defaulting on payments is one of the biggest challenges companies face. Imagine the following situation: working with credit concession or installment sales, but without the certainty that you will receive the full amount. And, on top of that, your company's sources of revenue are affected by the increase in outstanding debts.

These and other concerns are on the minds of entrepreneurs across the country every day. By March 2021, the number of defaulters in Brazil had reached 60 million. Half of them were considered by financial experts to be “over-indebted,” meaning they had more bills than they could pay. The data comes from the Brazilian Institute for Consumer Protection (Idec) and demonstrates some of the effects caused by the pandemic on the national credit market.

At these times, one thing is certain: regardless of your line of rcs database or the characteristics of your company (whether B2B or B2C), you will need to deal with defaulting customers . And when it comes to registering one of their names with credit protection agencies, the question arises: What documents can be used in the process? Is there a minimum or maximum period for reporting a debtor?

Below, we explain which documents can be presented in the negative report, in addition to answering important questions to improve your company's collection process !





What documents can I use to report defaulters?


A customer who delays payments in commercial transactions (purchase and sale of products) and financial transactions is considered to be in default. Provision of services or legally verifiable negotiations may also be considered.

In the debt registration process, the entrepreneur may present the following evidence to notify the debtor:



Returned checks as long as they meet the following conditions: Check without funds after the second attempt, Account closed or if considered a Spurious Practice – if also issued by a closed account, more than 3 times. Stopped checks are not considered valid for negative assessment.
Promissory notes;
Invoices;
Contracts – as long as they are signed by at least two witnesses;
Bills of exchange – a type of credit instrument issued by financial institutions. In this case, your client grants your company the right to redeem the document;
Budgets duly approved in accordance with current legislation.










Other important questions about negative listing


1. When reporting a defaulter, can I also hold guarantors and endorsers of the purchase liable?
Yes, you can as long as this third party has signed one of the documents mentioned above.



2. Can I report a debt as negative and protest it at the same time?
Yes. By registering a debtor client with the credit bureaus, you will be demonstrating to the market that the company or person has outstanding debts with your company. In the case of protests, the debt will be registered in a different database, linked to Brazilian notary offices.