To deny or to protest? Understand the differences and which is the best solution

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Negative reporting or protesting are two distinct procedures normally used by legal entities in debt collection actions. They should be part of a company's commercial strategy, especially since, in August of this year, Brazil czech republic phone number list its record for defaulting on payments. According to Serasa Experian, 63.4 million people are in default — the highest number recorded since the beginning of the historical series, in March 2016.

In this context, there are two ways to avoid damage caused by customers who do not honor their commitments. One is to carefully evaluate who will have access to credit, and the other is to use legally accepted means of collection.

Therefore, in this article, we will present what these means are, their limits in the legal and administrative sphere, and which is the most advantageous depending on the circumstances. Enjoy reading!

What is protesting a debt?
Debt protest consists of notifying the debtor about his debt through a notary's office. It is an act supported by Federal Law No. 9492/97, which establishes rules, limits and sanctions for people with protested titles.

Being a legal act, it entails more serious consequences for those whose names are involved. Some of them are:

prohibition from participating in public tenders;
prohibition of transfer of real estate;
limitations on the release of bank loans.
For the creditor, the protest has the additional advantage of being completely free of charge. Furthermore, once the request is filed, the registry office itself is responsible for informing the negative reporting agencies about the protest. This measure also does not generate costs for the creditor.

Another characteristic of a protest in a notary's office is that it is an act that cannot be extinguished without due consideration. Therefore, once a person has a protested title, their name will only be removed from the notary's records if they pay the debt.