In a significant development for Brazilian retirees and pensioners, a minister from the Federal Court of Accounts (TCU) has greenlit the restart of new personal payroll loans from the National Social Security Institute (INSS). The decision, made on Friday, May 8th, temporarily lifts a suspension that had been in effect since the previous week.
The ruling, issued by Minister Marcos Bemquerer, who is the rapporteur for the case, specifically allows for the granting of new personal payroll-deducted loans. This type of credit is automatically repaid through deductions from the beneficiary's monthly pension or salary, making it a popular and generally safer financial product for this demographic.
However, the decision is not a blanket approval for all payroll credit. Minister Bemquerer's authorization explicitly excludes two other modalities: the payroll-deductible credit card and the payroll-deductible benefit card. These products will remain suspended and unavailable to new applicants for the time being.
The government had filed an appeal with the TCU, seeking permission to resume the personal payroll loans while the court's final judgment on the broader case is still pending. In its argument, the Executive branch highlighted the severe social and economic consequences of a prolonged suspension.
The government's submission warned that blocking access to payroll loans would force retirees and pensioners to seek out more expensive and less secure forms of credit. This could push vulnerable individuals into the informal credit market or increase their risk of falling into unsustainable debt, a situation known as over-indebtedness.
This interim measure provides a temporary reprieve, allowing the flow of this specific credit line to continue while the TCU conducts its full analysis of the government's appeal and the merits of the case. The final decision on the future of all new INSS payroll credit products will depend on the court's ultimate ruling.
Based on reporting from g1.