Overindebtedness and Responsible Credit: The Breach of Banking Compliance Duties and the Enactment of Law No. 14.181/2021

Abstract

Compliance programmes are present in the Banking System through standards such as the Guide to Good Compliance Practices of the Brazilian Federation of Banks and the Resolutions of the Central Bank of Brazil No. 2.554/1998, 4.595/2017 and 4.557/2017 that financial and equivalent institutions authorised to operate in the country must establish responsible credit policies. However, such measures are not effective due to the broad scenario of overindebtedness of individuals borrowing credit, which are now protected by Law No. 14.181/2021, whose principle is the protection of overindebted consumers by establishing sanctions for financial institutions that irresponsibly grant credit.