Credit Protection Services – General Finance

In Brazil, we have several credit information systems, the SPC, SPC Brazil, SCPC – Boa Vista Serviços. The most known and feared credit protection service is without a doubt the SPC .

These organizations are responsible for receiving and distributing information to shopkeepers, private banks, and financial entities, the main subject being financial debts, debits and payments of unpaid consumer accounts, and credit analyzes. Who has never heard the expression “dirty name”, “negativado”, “name blocked” and “with restriction”? Well, who maintains this data on debtors and defaulters are credit protection systems, including SPCs.

1 – SPC, good boy or bandit?

It is neither good nor bad, the SPC is only a means to warn the trade that the consumer is owed to a particular institution, company or organ, etc. In my opinion is an excellent public and private service provision.

Should not this practice be banned? Not at all …, despite bringing serious problems and restricting credit to those with open debts, the SPC ‘ s credit protection system benefits thousands of punctual consumers.

2 – What is the importance of SPCs?

The SPC ‘ s are extremely important services for institutions and financial institutions to decide whether to grant credit, loans and financing to consumers and businesses. To better understand the importance of credit protection services let me explain the following:
” Every time you get credit, you consume goods, you make loans, financings, overdrafts, and dozens of other financial products failing to honor your monthly payments, your name goes to the SPC’s lists .” The importance of SPCs encompasses both the retail trade and financial institutions in general.

The compliant consumer is also benefited. As I said, protection services are very beneficial as well, because it tells the trade that the client has the potential of a good payer and, on the other hand, points out who is a poor payer, that is, a debtor.

3 – Access to credit with the help of SPC’s

3 - Access to credit with the help of SPC

In order to have credit and access to financing lines, the consumer citizen should not be denied in the SPC, this is one of the concession rules of most if not all financial institutions.

Whenever you seek to borrow lines of credit, loans, credit, installment financing or when you ask for a credit card from an administrator, they request information from the protective bodies to ensure that the operation has the minimum risk.

4 – Credit risk assessment with SPC’s

We have already understood that most financial institutions assess the history of customers and request data from SPC and also from SERASA to determine whether the customer is a good payer or not.

It is worth remembering that credit companies that do not evaluate their name in the SPC , the calculated risks are much greater, in this way, the interest and charges applied in the credit operations will be much higher. This happens to cover eventual expenses with people who will become defaulters.

5 – SPC positive registration

5 - SPC positive registration

A project that will benefit countless consumers, shopkeepers and other financial entities, is the register of good payers, popularly known as “Positive Registration”. However, in order to have access to the Positive Register, the decision to participate is exclusive to the client and not to the retailer or SPC.

By choosing to share your data, organizations will have access to identify the payment profile of customers, ie those customers who always pay up-to-date, will have privileges, such as reduced interest rates or special financing conditions. It will be like a reward for paying your bills on time.

6 – Clear the list of SPC’s

Anyone with a restriction on the SPC register should at this time be worried about clearing the name and withdrawing CPF from the SPC from there to avoid embarrassment, which by the way, are not few.

To take the name of the SPC is simple, some portals offer free access, for this, simply identify yourself, find the lender and carry out the negotiation. Paying the debits in full or in installments, in the first installment the consumer is freed from the anguish of having the “dirty name”.

7 – Companies that take their name from SPC’s

Watch out! Do not fall for the vicar’s tale, there are many companies and people applying “We Wipe Your Name” scams, they say that for a ridiculous amount they can exclude your name from SPC’s and Serasa .

This is farce, the credit protection system only removes the name of the defaulter following legal rules and procedures established between the parties, one of them and receiving information from the creditor that the defaulter has no more debts.

“If you do not want problems with dirty name and credit restriction in the square, the best thing is to not owe anything to anyone, if you already owe, it is best to renegotiate the debts”

Tip : Identify your pending issues immediately, renegotiate them that in no time your name will be off the list of debtors.