Debt does not disappear with an injunction: understand how the 'Clear Name industry' deceives debtors in Brazil

Associations, lawyers and judges are investigated in the "Name Cleaning Industry" Having one's name removed from default records does not mean that the debt has ceased to exist. This is the main difference behind the so-called "Name Cleaning Industry", a scheme investigated in several states that promises to return credit to indebted consumers through court injunctions. According to investigators, the decisions only temporarily hide the restrictions, while the debts remain active and may appear again later.
"There is no magic formula. Don't fall into this trap of believing that a debt that really exists can simply be camouflaged and disappear overnight", says André Gomes Netto, president of the Association of Protest Notaries in Brazil. a supposed "Limp Nome industry", a scheme that has already hidden around R$130 billion in debts in the last five years.
The model works through associations that present themselves as defenders of consumer rights. They take legal action with collective actions asking that credit protection bodies, such as Serasa and SPC, stop displaying financial restrictions on indebted people. debts continue to exist.
According to investigators, the main argument used in the actions is that consumers would not have been notified about the denial, a requirement set out in the Consumer Protection Code. However, the investigations indicate that, in most cases, communication was carried out regularly.
Clear-name: million-dollar fraud scheme involves ghost addresses and even judges
Clear-name: million-dollar fraud scheme involves ghost addresses and even judges. judges
Fantastic/ Reproduction
Ghost associations and small towns
The investigations identified entities registered in small municipalities that concentrated thousands of beneficiaries spread across the country.
In São Gonçalo do Piauí, a city with less than 5 thousand inhabitants, an association allegedly obtained injunctions that benefited around 63 thousand people - a number equivalent to more than 13 times the local population. At the address reported as its headquarters, residents claimed to be unaware of the entity's existence.
Of. According to prosecutors, lists of consumers were passed on to associations, which began to represent them in court. In some cases, the beneficiaries themselves might not even know that they had been included as members.
The choice of smaller cities would also have a strategic objective: to obtain judicial decisions more quickly, since these districts tend to have a lower procedural volume.
Suspicions of corruption
One of the fronts investigated involves the Grupo Amigos do Consumidor (GAC), an association based in João Pessoa. a formal branch in Caldas Brandão, a municipality in Paraíba with around 5 thousand inhabitants, but residents said they had never seen any activity by the organization there.
Prosecutors point out that an injunction in favor of the group was granted just 13 hours after the action was filed. The judge responsible for the case, Glauco Coutinho Marques, became a defendant in an investigation that investigates the receipt of bribes to favor the association. accusations.
The Public Prosecutor's Office denounced seven people linked to the scheme for crimes such as corruption, document falsification, money laundering and criminal organization. The magistrate is investigated and claims to have acted within the limits of her duties.
Impact on the market
Experts warn that hiding debts can cause losses for companies and distortions in the credit system.
A businessman in the solar energy sector reported a loss of approximately R$3 million after granting credit to a client who appeared with a clean name thanks to a court decision, although he already had records of default that were hidden.
For investigators, the effect spreads throughout the economy. With a greater risk of default, financial institutions raise interest rates and tighten credit granting criteria, which ends up affecting consumers who keep their accounts up to date.
The National Council of Justice (CNJ) reported that it monitors the growth of actions considered predatory and fraudulent and has worked with courts to identify repetitive and abusive demands.
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Source: G1