Bank debt
Interest, fees or an installment that does not add up?
Financing, loans, credit cards, overdraft and consórcio (a Brazilian pooled purchase plan). Dr. Jin checks the interest, fees and charges in the contract, before or during a collection. For individuals and small business owners, in person in Foz do Iguaçu and online throughout Brazil.
What we do
Before negotiating, check the contract
The amount the bank charges is not always what the contract allows. The review starts with the contract and the statements: with them it is possible to see whether interest, fees or insurance were overcharged.
Financing and loans
Interest, charges and insurance checked installment by installment.
Credit cards and overdraft
Revolving interest and fees posted on the bill and the bank statement.
Consórcio (pooled purchase plan)
Amounts charged and refund of the installments paid when you withdraw.
Financed property
Late payments on financing secured by a fiduciary lien (alienação fiduciária), before the bank takes back the property.
Financed vehicle
Late car payments and a court request to seize the vehicle.
How it works
What is reviewed in your case
The contract, the calculation and the stage of collection
The contract
The interest rate, fees and insurance it provides for, and whether what was charged matches them.
The calculation
The calculation is redone installment by installment, to compare what was charged with what the contract and the law allow.
The collection
If the debt is already in court, with a frozen account or seizure of assets, the defense follows the rules of enforcement proceedings.
See debt collection defenseThe calculation in bank debt
Dr. Jin explains the legal rules and the financial calculation in plain language. He redoes the interest calculation and reviews the contract clauses to check for interest above the limit set by law or by the contract, and for illegal or disproportionate terms. When the bank instrument cannot be enforced, or does not state a certain and fixed amount, he asks the judge to declare the instrument unliquidated and to annul the enforcement proceeding. Whenever he states a deadline, he cites the law.
Questions
Frequently asked questions about bank debt
Can the bank charge more than what is in the contract?
No. The bank must charge what the contract provides for, within the rules of Brazil's Central Bank. The Brazilian Consumer Protection Code applies to banks (Precedent 297 of the STJ, Brazil's Superior Court of Justice), which makes it possible to challenge abusive clauses.
Is it worth checking the debt before negotiating?
Checking the contract first helps you know whether the amount the bank proposes is what is really owed. The review shows what can and cannot be challenged, before any engagement.
Does stopping payments help with the review?
Not without guidance. Late payment generates default interest and can lead to your name being listed with credit bureaus and to a lawsuit to collect the debt. Each case needs to be reviewed first.
I am behind on my property financing. What should I do?
In financing secured by a fiduciary lien (alienação fiduciária), the bank can take back the property and send it to auction. Before ownership is consolidated in the bank's name, the law gives 15 days after notice to pay the overdue installments (Brazilian Law 9.514/97, art. 26, §1). The earlier the review, the more options there are.
The bank took my car. Can anything still be done?
Yes, but the deadlines are short. After the financed car is seized, you have 5 days to pay the debt amount presented by the bank and get the car back, and 15 days to file your defense in the lawsuit (Decree Law 911/1969, art. 3, § 2 and § 3). That is why the review needs to start right away.
I already renegotiated the debt. Can I still challenge the interest?
Yes. Renegotiating or signing a debt acknowledgment does not prevent you from challenging illegal charges in the earlier contracts (Precedent 286 of the STJ). Keep both the old and the new contracts.
How long does the bank have to collect a debt?
For a contract debt, such as a loan or financing, the deadline is usually 5 years (Brazilian Civil Code, art. 206, § 5, I). If the collection is already in court and has been idle for years, it can also become time barred during the lawsuit.
I live far from Foz do Iguaçu. Can the review be done remotely?
Yes. Service is online throughout Brazil: documents are sent by WhatsApp or email, the conversation is by video call, and court cases today are, in general, electronic.
Which documents should I gather?
The contract, the statements and bills, proof of payments and any notice or collection letter from the bank. If there is already a lawsuit, its case number.
A bank debt that does not add up?
Send the contract and the statements by WhatsApp. In-person service in Foz do Iguaçu and online throughout Brazil.