LEGAL CONTROL OF CREDIT ADVERSITING: A NECESSARY EXPANSION TO PREVENT OVER-INDEBTEDENSS

Abstract

This analysis aims to explore the possibility of expanding legal control over credit advertising as a means of establishing a culture of prevention against over-indebtedness. Despite the recent update to the Consumer Protection Code, brought about by the publication of Law 14,181/2021, known as the Over-Indebtedness Law, there has been no significant change that could curb the actions of financial institutions in addressing over-indebted customers, thereby perpetuating a culture of treatment at the expense of problem prevention. Additionally, self-regulation of advertising practices has proven insufficient for adequate prevention and is rarely accessed by consumers to report frequent abuses. Considering the active and aggressive stance of financial institutions in offering credit as a key factor in the growing indebted population, this article seeks to identify the potential for increasing legislation, justified by the harmful effects of abusive credit advertising and its contribution to over-indebtedness.