Can a Personalized Advantage Loan Expire? Check the Supreme Court’s decision

Auxílio Brasil’s new loan, even before its launch, has sparked talk. This is because once the method was announced, many beneficiaries had already shown a keen interest in contracting out the credit. Among the possibility of obtaining specific credit to beneficiaries, several questions were raised about payroll.

Recently, experts requested that the cargo be pulled out of the air. This is because the credit was covering several problems capable of endangering the beneficiaries’ situations. Therefore, the Federal Supreme Court (STF), after conducting an analysis, decided what will be the new destination of the addressee, as well as what will change.

Charging problems

First of all, it is absolutely essential that the beneficiaries understand the problems that have led to the request for a payroll loan suspension. In general, the new payroll is intended to cover all beneficiaries of Auxílio Brasil. This is because, as the name itself states, the payroll loan is intended to settle the monthly installments of the program.

First, the biggest problem that exists with credit is precisely the fact of obligation. The Ministry of Citizenship has specified that beneficiaries can commit up to R$160 in monthly payments, taking into account fixed amounts of R$400. However, the Public Prosecution Office, along with many professionals from various financial fields, warned users about the risk of indebtedness of the country’s most vulnerable population.

Additionally, the credit interest cap is 3.5%. However, many banks attempt to practice so-called “restricted selling”, in which an attempt to sell insurance occurs, further exposing the beneficiaries’ income to risk. Moreover, the last point regarding the loan is related to the concession period. As per government rules, after approval, banks have up to two business days to deposit funds into the beneficiary’s account. However, this took up to 15 days.

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STF . decision

In advance, as mentioned earlier, several professionals, including the Public Prosecution Office, requested the suspension of the new salary loan from Auxílio Brasil. This was due to all of the above facts, including the claim of several beneficiaries who opted for the contract. On the first day of the loan alone, Caixa Econômica Federal issued over R$70 million to individuals to contract.

After this negative repercussions of the method, the deputy sent a request directly to the STF, in order to permanently suspend the possibility of credit. Thus, after the evaluation of the Federal Supreme Court, it was decided that the loan would continue to be in force. STF addressed the risk of indebtedness, noting that the practice of charging has been available for a long time.

With this bias, it’s worth emphasizing that payroll is still on display, and as of now, there is no deadline for closing it. Therefore, all beneficiaries who wish to contract the option should contact the banks that offer the option, the most important of which is Caixa. Finally, it is very important to pay attention to the risks of the loan.

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