C. On December 30, 2010, the Brazilian Government enacted
Provisional Measure no. 518/2010, which provides for the
creation of databases on positive consumer information that
contain data about timely payments and the due performance
of obligations. The purpose of these databases is to provide
companies and financial institutions with reasonable criteria
to award diligent customers with smaller interest rates
when granting credit. In order to be enrolled in the database,
the consumer's consent is required. Once consumers have
opted in, their payment information can be transferred by
companies to the database, which then forms part of their
specific credit history. Sensitive data and information
that is not related to a consumer's credit history cannot
be recorded. In addition, according to the Provisional Measure,
the consumer is not only entitled to access, cancel and
correct his or her data but also to be informed about the
data controller's identity, the purposes of the processing
and the recipients' identities, in case the data is shared
or transferred to other databases. Consumers may opt out
anytime from the database.
is it legal for companies to provide to public databases
information about an individual's history in terms of their
timeliness of payments and performance of obligations?
No, it violates Brazilian privacy law to provide such information.
Yes, but only about timeliness of payments, not about other
performance of obligations.
Yes to both, but certain conditions must be met first.
Yes to both, period, no conditions.