Overview

• The relator declared unconstitutional the article of the 2023 Marco Legal das Garantias that allowed state Detrans to carry out extrajudicial execution of vehicle collateral.
• Dias Toffoli revised his earlier position, was followed by Cristiano Zanin, and the case continues in the Supreme Court’s virtual plenary without a final outcome yet.
• The vote would reserve extrajudicial procedures to cartórios regulated by the National Council of Justice, replacing the administrative path through Detrans.
• The National Association of Detrans said the shift weakens the federal pact and raises costs, while Acrefi warned of disrupted recoveries and more expensive auto credit and remains an amicus curiae.
• Poder360 cited market estimates that vehicle financing totals about R$400 billion a year and could approach R$1 trillion with a more efficient guarantees framework.