New Protections Against Abusive Charges on INSS Payroll Loans

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

New rules protecting payroll-deducted credit (crédito consignado) ban charges that have long eaten into the income of INSS (Brazil’s National Social Security Institute) retirees and pensioners, such as an additional card issued without authorization, maintenance fees, and interest on an invoice that has already been paid.

What Is Now Prohibited on Payroll Loans

The set of measures aimed at payroll-deducted credit strengthens the protection of retirees and pensioners against practices that had been straining the monthly budgets of people who depend on their benefits. The logic behind the changes is simple: no charge may be placed on a beneficiary unless the beneficiary has clearly and previously authorized each transaction. The stated goal is to curb the growth of debt among older Brazilians, who hold most of the payroll loan contracts signed in the country.

Three prohibitions have the most immediate impact. The first bans issuing an additional payroll credit card without the cardholder’s express authorization. Financial institutions can no longer send or activate a second card on their own initiative, a practice that often produced unexpected invoices and automatic deductions from income.

The second prohibits charging an opening fee, a maintenance fee, or an annual fee on the payroll card. These amounts, charged on a recurring basis, reduced the available balance and burdened the insured person without a proportionate benefit in return. Under the rule, the product no longer carries periodic fees that made the credit more expensive and made it harder for beneficiaries to keep track of how much they were actually paying each month.

Interest on a Paid Invoice: Now Prohibited

The third protection addresses a sensitive point. Charging interest on an invoice paid in full by its due date is now prohibited. Anyone who pays the full invoice amount on time cannot be charged finance charges, a rule that brings the payroll card closer to an ordinary credit card when the holder does not use revolving credit.

The practical effect falls on the so-called benefit payroll card, a product that combines a cash withdrawal limit with a minimum payment deducted directly from the benefit payment. Previously, even paying in full could be followed by interest charges, which kept the beneficiary in a cycle of debt. The prohibition stops that mechanism.

The new conditions apply to contracts and transactions made after each limit takes effect. Contracts signed earlier keep their agreed terms until the outstanding balance is paid off in full, so the transition does not retroactively change what has already been signed. This separation seeks to balance the protection of beneficiaries with legal certainty for transactions already underway.

The set of measures aimed at payroll-deducted credit strengthens the protection of retirees and pensioners against practices that had been straining the monthly budgets of people who depend on their benefits.

How to Dispute Improper Charges

A beneficiary who spots an irregular deduction from their benefit has a formal way to challenge it. The first step is to gather the supporting documents: the statement of payroll deductions, the amount deducted, the name of the institution, and the date the deduction began. This material supports your complaint and speeds up the review.

The dispute is filed through INSS’s official channels, mainly the Meu INSS app and website and the call center at 135. Once the complaint is registered, the responsible financial institution has a deadline to prove that the charge was proper or to return the amounts deducted without legal basis. You should write down the protocol number you receive, because it lets you track the progress of your complaint and proves the date you filed it.

If the company fails to prove the deduction was legitimate within the deadline, the authorization to use the payroll margin may be canceled, and amounts charged improperly must be refunded. The process provides for a statement from the beneficiary and a decision by the paying agency, which notifies the parties of the outcome of the review.

Precautions Before You Sign

Prevention is still the most effective defense. Before accepting any offer, beneficiaries should check the Total Effective Cost (Custo Efetivo Total), confirm the number of installments, and be wary of offers made by phone or through messaging apps. Checking your statement of payroll deductions regularly lets you spot unauthorized deductions early and react before the loss builds up over several months.

Frequently Asked Questions

Which charges are now prohibited on the payroll card?

The following are prohibited: issuing an additional card without express authorization, charging an opening, maintenance, or annual fee, and charging interest on an invoice paid in full by its due date. The new conditions apply to contracts made after each rule takes effect and do not change earlier contracts.

How can a beneficiary dispute an improper deduction?

The insured person should gather the statement and proof of the deduction and file a complaint through the Meu INSS app or website, or by calling 135. The financial institution then has a deadline to prove that the charge was proper or return the amounts. If it cannot, a refund becomes mandatory.

Will old contracts be affected by the new protections?

No. The rules apply to transactions signed after each limit takes effect. Contracts made before that keep the terms originally agreed until the outstanding balance is paid off in full, which preserves legal certainty for transactions already underway.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.