Entities want to postpone Auxílio Brasil payroll loan

A group of consumer protection organizations wants the deferral of the payroll loan linked to Auxílio Brasil and the federal government’s income transfer programs. In a campaign launched this Monday (15), the organizations also ask for studies and technical manifestation of experts on the measure.

The possibility of a loan for those who are part of the program was regulated by President Jair Bolsonaro on Friday (12), in a decree published in the Official Gazette. According to the law, Auxílio Brasil beneficiaries can commit up to 40% of their income to the payroll loan.

The movement around the “Note in Defense of the Economic Integrity of the Vulnerable Population” was organized by Idec (Brazilian Institute for Consumer Protection), by the Public Defender’s Office of the State of São Paulo, by the Indebted Support Program of the Faculty of Law of Ribeirão Black and by I believe.

“We request the postponement of the beginning of the commercialization of credit for Auxílio Brasil and other income transfer programs, for the preparation of studies and technical manifestation of specialists and civil society, as necessary for the elaboration of any public policy”, says an excerpt from the letter. .

The document can be signed by entities and individuals, on the website www.defesadosvulneraveis.com. The group’s intention is to gather as many members as possible to define the best strategy and take it to the Ministry of Citizenship. However, they do not rule out legal measures.

Interest rates are among the concerns

In a note, Idec says that the interest rates practiced by the market, which can reach percentages of 79% to 98% per year, are among the main concerns.

“The beneficiary of Auxílio Brasil who requests R$ 2,000 in credit will end up with a debt of R$ 4,000, practically half of which will be converted into profit for the banks”, says Julia Catão Dias, a lawyer for the institute’s financial services program.

For Maria Paula Bertran, a professor at the Ribeirão Preto Law School and responsible for the Indebted Support Program, this is a bad public policy. According to her, the responsibility for credit is being left only in the hands of vulnerable consumers, but the government and banks should also take into account the quality of life of the beneficiaries.

She also warns that major macroeconomic crises begin with the over-indebtedness of the population and that this must be a concern that cannot be ignored.

indebtedness risk

Abefin ​​(Brazilian Association of Financial Educators) also has reservations about payroll loans. “It’s not that credit is bad. The problem is to compromise a gain that is already low with indebtedness. These are families that have survival priorities and, in this case, will be inserted in a complex context of consumption”, says Reinaldo Domingos, president of the association and Dsop Educação Financeira.

In a note, Febraban (Brazilian Federation of Banks) states that the consignment to social programs allows the provision of resources to this public in a “fast and cheaper way”. The entity also says that each financial institution can establish the criteria for granting credit.

In addition, it states that “the demand for a credit operation must be carefully evaluated by the banks and by the beneficiary, in order to prevent over-indebtedness”. So far, among the largest banks, only Caixa Econômica Federal has commented on offering the loan. Itaú and Bradesco have already ruled out and Banco do Brasil is evaluating the offer.

When contacted, the Ministry of Citizenship did not respond.

Understand how payroll loans work

The payroll loan is a loan deducted directly from the payroll, without any risk of default to banks and financial institutions. That way, interest rates are usually lower. In the case of payroll-deductible loans from the INSS (National Social Security Institute), the interest is defined by the Social Security Council.

A substitute for Bolsa Família, Auxílio Brasil pays R$400 monthly to families considered to be socially vulnerable. From August to December, the program will transfer the minimum amount of R$ 600 to more than 20 million families registered in CadÚnico (Cadastro Único).

Idec calculations indicate that the 40% discount on the R$ 400 of the program will represent R$ 160 per month. “The beneficiary who would receive R$ 400 will have only R$ 240 to buy food, medicine, pay rent, water, electricity. Thus, the program would totally lose its purpose”, says a note.