STJ Rules: Debts That Have Been Time-barred Cannot Be Collected

Have you ever received a charge for an old debt and wondered whether it was still valid? A recent decision by the Superior Court of Justice (STJ) brought relief to many consumers by determining that time-barred debts cannot be collected judicially or extrajudicially, that is, time-barred debts cannot be collected in any way or by any means. This decision is further proof that the law is on the side of the consumer, protecting their rights against abusive practices and bringing more security to consumer relations.

What is the statute of limitations on debts?

The statute of limitations is the deadline established by law for a debt to be collected judicially. After this period, the creditor loses the right to seek payment through judicial means, although he or she may attempt to negotiate extrajudicially.

According to article 206 of the Civil Code, the limitation period varies according to the type of obligation:

- Personal debts, such as loans or credit cards, are subject to a limitation period of 5 years (article 206, §5º, I).

- Obligations arising from rents are subject to a limitation period of 3 years (article 206, §3º, I).

The decision of the STJ

The Superior Court of Justice - STJ, issued a paradigmatic decision when judging Resp no. 2,088,100/SP, reported by Justice Nancy Andrighi, which established the parameter that once the statute of limitations has been recognized, due to its effects and legal certainty, it will no longer be possible to collect the debt, since the statute of limitations prevents the collection of the debt, judicially or extrajudicially, as cited below:

"[…] 6. If the claim is the power to demand compliance with the service, once it is paralyzed due to the statute of limitations, it will no longer be possible to demand the aforementioned behavior from the debtor, that is, it will no longer be possible to collect the debt. Therefore, the recognition of the statute of limitations of the claim prevents both the judicial and extrajudicial collection of the debt. 7. Hypothesis in which the ordinary courts have stated that the statute of limitations of the creditor's claim is undisputed, and it should be concluded that it is impossible to collect the debt, judicially or extrajudicially, imposing the maintenance of the appealed decision. 8. Special appeal heard and dismissed (REsp No. 2,088,100/SP, rapporteur Justice Nancy Andrighi, Third Panel, decided on 10/17/2023, E-DJ of 10/23/2023. (Our emphasis).

The STJ reaffirmed that, in addition to not being able to be collected by any means, whether judicial or extrajudicial, as well as statute-barred debts, they also cannot be used to embarrass or pressure the consumer. The decision highlights that the attempt to collect statute-barred debts, especially with practices that violate the consumer's dignity, can be characterized as abusive and illegal, according to article 42 of the Consumer Defense Code (CDC).

Practical example

Imagine that you incurred a debt in 2015 and, since then, have not made payments. In 2024, you receive an extrajudicial collection from a company, which threatens to take the case to court. In this scenario, the debt is already time-barred, and the creditor cannot take legal action against you. Furthermore, if the collection is made abusively, you can report the practice to Procon or seek redress in court.

How to act when faced with collections of time-barred debts

1. Check the date of the debt: Consult records and contracts to identify when the debt was generated and whether the prescriptive period has expired.

2. Seek legal advice: A lawyer can help identify abusive practices and take the appropriate legal measures.

3. Report abusive practices: If you feel embarrassed or threatened, contact Procon or file a complaint with the Small Claims Court.

Conclusion:

The STJ decision reinforces that no one should be subjected to unfair or abusive collections. Knowing your rights is the first step to protecting your dignity and ensuring a more peaceful financial life. Remember: even when faced with financial difficulties, you have rights, and the courts are on your side to defend them.

Antônio Barbosa Lima O’Brien Júnior, Lawyer specialized in Consumer Law, Civil Law and Civil Procedure. For more information, contact us today for more information on how we can help you invest safely in Brazil: : +55 86 9 9988 - 9668.

LATTES CV

Graduated in Law from Maurício de Nassau College - FAP Unit (2017). Graduated in Portuguese and English Literature from ETEP University Center (2023). Graduated in Portuguese and Spanish Literature from IBRA College in Brasília (2024). Completed a Technical Course in Buildings at the Maranhão Vocational Education Technological Center - CTEPMA (2024). Postgraduate in Consumer Law, Civil and Procedural Law, and Public Law from Legale College (2021). Postgraduate in Higher Education Teaching from Cândido Mendes University - Pró Saber Institute. Postgraduate in Women's Law; Pension Planning; Estate, Family, and Succession Planning, all from Legale College. Lawyer regularly registered with the Brazilian Bar Association under number 16650. Address to access this CV: https://lattes.cnpq.br/4424387435868424

REFERENCES

BRAZIL. Law No. 10,406 of January 10, 2002. Institutes the Civil Code. Official Gazette of the Union: section 1, Brasília, DF, year 139, no. 8, p.

BRAZIL. Law No. 10,406 of January 10, 2002. Institutes the Civil Code. Official Gazette of the Union: section 1, Brasília, DF, year 139, no. 8, p.

BRAZIL. Superior Court of Justice - STJ. 3rd Panel. Special Appeal No. 2,088,100 - SP (2023/0264519-5). Appellant: Itapeva Credit Recovery LTDA. Respondent: Danilo Pedro de Araujo. Rapporteur: Hon. Mrs. Minister NANCY ANDRIGHI. Judgment: 10/17/2023. Source: <https://processo.stj.jus.br/SCON/GetInteiroTeorDoAcordao?num_registro=202302645195&dt_publicacao=10/23/2023>. Accessed on July 7, 2024.