Financial services litigation—Brazil—Q&A guide
Financial services litigation—Brazil—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Financial services litigation—Brazil—Q&A guide
  • 1. What are the most common causes of action brought against banks and other financial services providers by their customers?
  • 2. In claims for the mis-selling of financial products, what types of non-contractual duties have been recognised by the court? In particular, is there scope to plead that duties owed by financial institutions to the relevant regulator in your jurisdiction are also owed directly by a financial institution to its customers?
  • 3. In claims for untrue or misleading statements or omissions in prospectuses, listing particulars and periodic financial disclosures, is there a statutory liability regime?
  • 4. Is there an implied duty of good faith in contracts concluded between financial institutions and their customers? What is the effect of this duty on financial services litigation?
  • 5. In what circumstances will a financial institution owe fiduciary duties to its customers? What is the effect of such duties on financial services litigation?
  • 6. How are standard form master agreements for particular financial transactions treated?
  • 7. Can a financial institution limit or exclude its liability? What statutory protections exist to protect the interests of consumers and private parties?
  • 8. What other restrictions apply to the freedom of financial institutions to contract?
  • 9. What remedies are available in financial services litigation?
  • More...

Financial services litigation—Brazil—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to financial services litigation in Brazil published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020).

Authors: Trench Rossi Watanabe—Giuliana Schunck; Gledson Marques de Campos

1. What are the most common causes of action brought against banks and other financial services providers by their customers?

In Brazil, the most common causes of action brought against banks and other financial institutions are claims alleging breach of consumer protection rules. Commercial banks and financial entities that grant loans for individuals and legal entities usually have a high number of lawsuits and consumer claims filed against them. Several factors are driving this phenomenon, one of the main factors being the high level of interest rates experienced in Brazil. The claims usually challenge accrual of interest, excessive rates, lack of suitability and over-indebtedness.

Another major type of claim is lawsuits claiming the payment of moral damages to bank clients that complain about an improper listing of the name of the debtor in a public list of debtors. These claims are divided into lawsuits filed by bank clients against financial institutions, counterclaims filed in connection with collection lawsuits and foreclosures filed by the banks against debtors. The claims are usually grounded in statutory consumer laws and an alleged contractual breach derived therefrom.

Judicial disputes involving

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