In today’s issue: Brazilian Congress puts consumer data privacy at risk. Is Bolsonaro losing the evangelicals?
Brazilian Congress puts consumer data privacy at risk
In a 66-5 vote, the Senate approved the automatic inclusion of citizens on a list of “good payers,” a database of people who pay their debts without delays. Today, databases exist only for “bad payers.” The bill now needs to be signed by the president to become a law. Advocates of the proposal say it will “make it possible for companies and individuals who don’t skip a due date to have access to cheaper and better credit.”
The logic behind the argument is that the list will lower banks’ risks when lending money to consumers. And lower risks will lead to lower interest rates. That logic, however, has proven faulty in other industries. In 2017, for example, the government allowed airlines to charge for checking luggage. The argument was that it would push ticket prices down—but they remained stable. Many believe that the “good payers” list will only lead to an increase of interest rates for clients who have raised red flags.