Brazil: Over 59 million consumers listed in default by credit reporting agencies
The number of Brazilian consumers aged between 18 and 95 years that are delinquent in paying their bills and listed as defaulters by credit reporting agencies reached 59.25 million in May, which accounts for 39.91% of the population in this age group. The data was released Thursday (Jun. 16) by one of these credit reporting agencies, SPC Brazil, and the National Retailers' Confederation (CNDL).
Last month, 50,000 people became listed as defaulters in Brazil. This increase, however, was small compared to the 500,000 new consumers listed in April.
The listed defaulters accounted for more than half (50.32%) of the people in the 30-39 age group, or about 17 million consumers. Being listed as a defaulter by a credit reporting agency creates restrictions for buying on credit, making loans, or financing.
“Over the past few months, the delinquency rates have been influenced by a continually deteriorating economic scenario, which erodes household incomes, and imposes stricter credit restrictions. On the one hand, these restrictions help curb debt snowballing, but on the other hand, the decreasing incomes create difficulties for paying bills and honoring financial obligations,” said CNDL Chair Honório Pinheiro.
According to the retailers' organization, the results reported in May can be seen as a “stabilization” in the defaulters' list. “But it's too early to say there has been a shift in the growth trend of the past year,” Pinheiro said.
Translated by Mayra Borges
Fonte: Brazil: Over 59 million consumers listed in default by credit reporting agencies
