Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Brazil.
Amicable collections
General information
Atradius Collections maintains a professional collection process. We contact debtors verbally and in writing with a proactive and objective approach, in order to mitigate risk to our clients. Our team of collection specialists carry out the collection process in-house, adhering to federal and state laws and focusing on the relationships between our clients and their debtors.
Interest
Atradius Collections charges debtors interest as determined by the legal interest rate allowed in Brazil, according to the amounts due and applicable for domestic cases. However, for cases abroad, it is very complex to charge interest, because the debtor must submit documentation, including proof of money remittance to the Central Bank, unless the client has official documents such as invoices, debit notes and the likes to support the transaction. In accordance with the prevailing law, the interest allowed is 1% per month plus a payment default fine of 2%. From a cultural point of view, Brazilian debtors are willing to pay interest.
Debt collection costs
There are no legal restrictions in Brazil on charging debt collection costs; meanwhile, such costs cannot be considered to be abusive. From a cultural point of view, Brazilian debtors are not used to paying debt collection costs.
The Debt Collections Handbook presents a snapshot of Brazil's economic situation and covers the following topics:
- Legal procedures and lawsuit
- Insolvency proceedings
- Time frame and outcome
To read more about steps and procedures undertaken in debt collections in Brazil and other countries: