Stale Debt Is Unenforceable: Banks Cannot Collect After the Legal Deadline

It is a basic consumer right not to be charged for debts that have already expired. Staleness is a legal institute that determines the maximum period that the creditor has to collect a debt judicially or extrajudicially. After this period, the debt continues to exist only from an accounting point of view, but becomes unenforceable, that is, it can no longer be collected by legal or administrative means.

This understanding was recently reinforced in a decision by the Court of Justice of Piauí (TJ/PI), in the judgment of Civil Appeal No. 0800074-37.2022.8.18.0078, filed by Banco Bradesco S.A., in which the collection of a debt that had already expired was discussed. The first-instance sentence, handed down by the Court of the 2nd District Court of Valença do Piauí, was upheld, and the bank's appeal was dismissed. The 4th Specialized Civil Chamber of the TJ/PI highlighted that:

"The debt discussed in the proceedings is time-barred and, therefore, is unenforceable. The unenforceability of the debt prevents the creditor from seeking its collection through judicial and extrajudicial means."

This decision is perfectly aligned with what is determined by the Consumer Defense Code and the Civil Code:

Art. 3, § 2 of the CDC – which establishes the application of consumer legislation in consumer relations, including banking contracts;

Art. 206, § 5, I of the Civil Code – which provides for a three-year term for the prescription of the claim to collect liquidated debts contained in a private instrument.

In addition, the case law cited in the decision itself, such as that of the Court of Justice of São Paulo (TJ-SP), reinforces the thesis that consumers cannot be allowed to be exposed to undue charges for time-barred debts, protecting them against abuse.

This decision represents an important precedent in the defense of consumer rights, guaranteeing legal certainty and reinforcing the role of the courts in protecting against abusive practices, such as attempts to collect debts that have expired.

Be careful if you are being charged for an old debt, seek legal advice. Debts that have expired can no longer be collected and you may be entitled to compensation for any moral damages.

Dr. Antônio O’Brien Júnior, OAB/PI 16650, a lawyer specializing in Civil Law and Consumer Law, is available to answer your questions and assist you with legal issues.

If you would like more information or personalized assistance, you can schedule a consultation by email at antonio@aobjlaw.com or by phone/WhatsApp at +55 (86) 9 9988-9668.