The Supreme Federal Court (STF) may return power to the notary offices in cases of vehicle default.

A ruling by the Federal Supreme Court (STF) could return exclusive power to notary offices to repossess vehicles from defaulting debtors. As a result, the National Department of Transportation (Detran) loses the right to extrajudicially seize vehicles as collateral for financing.

The rapporteur for the case, Minister Dias Toffoli, changed his understanding. Dean Gilmar Mendes requested a review (more time) of the trial, which had been taking place in the virtual plenary since Friday (10).

Toffoli voted to deem unconstitutional a section of the Legal Framework for Guarantees that authorized the DMV to seize vehicles from debtors without a court order. Toffoli argued that the DMV lacked the legal authority or structure to perform this type of action, and that the function should fall exclusively to notary offices, which are generally owned by lawyers and overseen by the National Council of Justice (CNJ).

Without direct judicial oversight, the DMV could violate fundamental guarantees such as the right to a full defense and the right to adversarial proceedings. Justice Cristiano Zanin supported the vote before the request for review. The justice's vote was delivered in the ruling on motions for clarification in three cases currently under review in the Court's virtual plenary session.

Last year, the Supreme Federal Court ruled that the extrajudicial repossession of vehicles by the DMV, as provided for in the Legal Framework for Guarantees, was constitutional. In practice, if Toffoli's vote prevails, the Supreme Federal Court could hinder more direct repossession of vehicles by banks. The decision generated a negative reaction from industry organizations.

The National Association of Detrans (AND) issued a statement stating that the measure "weakens the federal pact" and increases costs for citizens. The AND asserts that Detrans have a "public administrative function," and their performance is "auditable and reviewable" by the courts.