See how the Auxílio Brasil loan debt looks if the benefit is cut

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Beneficiaries of Auxílio Brasil who contract payroll-deductible credit and lose the benefit will have to pay the debt until the end of the contract. If there is a delay, they will pay a fine and interest.

The rule, which is in regulations published at the end of September, has not been so clear for those seeking credit. Many believe the debt is forgiven or it would go to the government.

Although the websites of Caixa Econômica Federal — the largest bank to offer the loan — and the Ministry of Citizenship contain the information, it is not on the home page. To know the details, the citizen needs to search in questions and answers.

For Ione Amorim, coordinator of the financial services program at Idec (Brazilian Institute for Consumer Protection), there is a lack of transparency. In a survey carried out by the institute with more than 2,000 complaints after analyzing 9,000 comments on ten channels dealing with online finance, the lack of transparency was one of the problems.

“I would say that the information is very formal, it does not have the character of bringing transparency and guiding the consumer. This happens at all stages. Most are contracting the maximum value, blindly. .

The Auxílio Brasil consignment began to be offered in early October. Interest is limited to 3.5% per month, which is 51.11% per year, above the rate charged on the payroll of INSS (National Social Security Institute) retirees, of 2.14% per month. At Caixa, the rate is 3.45% per month.

It is possible to borrow up to R$ 2,569.34, in 24 installments, committing up to 40% of the benefit. The maximum monthly amount to be paid is R$ 160, considering the base value of the aid, which is R$ 400 — the R$ 600 are temporary, only until December. The installments are deducted directly from the benefit.

Considering the current BRL 600, the beneficiary remains BRL 440 per month. If the aid goes back to R$ 400, there will be R$ 240 left. “Few people do this account, that they will have to pay. For me, [o empréstimo] does not pay off, because there would be a debt”, says Dyane Ayala, 40 years old, beneficiary of Auxílio Brasil.

She says that, in the neighborhood where she lives, in the extreme east of the capital of São Paulo, there was a lot of debate about how the debt would be if the aid was cut. As a result, most chose not to hire and only a person they knew would have made the loan. The rest do not want to receive less value per month if they do the payroll.

What is known about loan debt

On the website of the Ministry of Citizenship, the information is that it will be necessary to pay the amounts until the end of the contract. The agency guides citizens to seek information from the bank where they contracted the credit.

More details are available on the Caixa website. “Like any other loan, it is necessary to pay it off, as the amount borrowed has been received. If payment is not made by the due date, the debt increases over time, as it has interest and a fine for delay. Therefore, the sooner you settle the debt, the less you will pay for it.”

According to the bank, for those who have the account closed, a payment slip will be issued. In addition, the beneficiary who fails to pay a debt will have more difficulties in obtaining future credit.

In contracting, according to the rules of loans, banks and finance companies need to make a questionnaire available to the beneficiary, to be answered by him, as one of the contracting stages.

Among the information is the sentence: “You can’t stop paying the installments or break the rules until the loan contract ends or you pay all the debt.”

For Ione, however, this is not enough. She says that banks and finance companies are offering the highest credit limit, without giving the option of lower values, with smaller installments, in addition to reports of tied sales, with insurance for the installments. “How to offer insurance for the benefits, if they are deducted directly from the benefit?”, she asks her.

The coordinator again states that she is not against credit, but says that there are risks for this population. “We understand that people have needs, but when we warn about the risks, it’s because it’s a population that, in addition to being vulnerable, has little familiarity with these credit rules”, she says.

See the rules when hiring the Auxílio Brasil consignment

Banks and finance companies must inform, in the contract:

  • Total amount with and without interest
  • Effective monthly and annual interest rate
  • Other fees levied on credit
  • Amount and total installments
  • How much will the beneficiary pay at the end
  • Discount start and end date
  • Net benefit amount with credit
  • CNPJ of the branch or bank correspondent, in addition to the agent’s CPF, with address and telephone number
  • Amount of commission paid to third parties

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