Default keeps rising in Porto Alegre, points out CDL-POA index

Default keeps rising in Porto Alegre, points out CDL-POA index

The CDL POA Delinquency Indicator recorded, in February, a new record of people with some type of credit limitation, check or protest. For Rio Grande do Sul, the Indicator found that 30.06% of the adult population is indebted and, in the Capital, the percentage is even higher, 33.01%. The survey also showed the highest monthly acceleration of the entire historical series: in relation to January, the variation reached +0.4 and +0.5 percentage points for RS and POA, respectively.

According to CDL POA’s credit and collection manager, Diego Ramos, in times of high delinquency, a close look at those who operate credit is essential to go through this moment with the lowest possible impacts, however, it is important to highlight that “turning off the faucet” without many criteria it can be as harmful as the increase in defaults, especially for retailers, which, in addition to the financial return on operations, has a direct influence on sales.

In order to mitigate the risks of the credit operation, the credit and collection manager recommends that the stores redouble their attention to the granting criteria, eventually cutting or reducing releases for higher risk profiles; if possible, avoid penetration into unknown portfolios and profiles; have a well-defined billing rule, with anticipation of actions; depending on the structure, search for outsourced partners to carry out the collection.

Data were obtained from the Boa Vista SCPC restrictive base, the largest available in the State. The CDL POA Delinquency Indicator reveals that the negative adult population reached 2.693 million in RS and 384.9 thousand in Porto Alegre. Between January and February 2023, 33,147 people from Rio Grande do Sul joined the group, 6,064 of them from Porto Alegre.

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