Toffoli Shifts Vote to Bar Detrans From Extrajudicial Repossession as Brazil’s Top Court Halts Case

Overview

• Dias Toffoli voted to strike down the Marco Legal das Garantias provision that let state Detrans execute fiduciary recoveries, restoring exclusive authority to notary offices under CNJ oversight.
• Toffoli cited risks to due-process guarantees for debtors and said cartórios operate under a uniform legal regime that ensures public judicial supervision.
• Cristiano Zanin followed Toffoli’s position in the Supreme Court’s virtual plenary, after a divergence initially opened by Flávio Dino.
• The virtual judgment, which began on October 10 and was scheduled to run until October 17, was suspended by a request for review from Justice Gilmar Mendes.
• Industry groups reacted quickly: Acrefi warned of halted recoveries and higher auto-credit costs, the Detrans’ association argued exclusion weakens federal coordination and efficiency, and market voices flagged potential pressure on vehicle lending.