INSS payroll: CNPS wants to disclose interest rates – 05/05/2023 – Market

The CNPS (National Social Security Council) approved on Thursday (4) a resolution that asks the INSS (National Social Security Institute) to adopt measures aimed at increasing transparency in INSS payroll loans, payroll credit cards and on the payroll benefits card.

In the request, the council requests that financial institutions inform the INSS of the monthly and annual interest rates of the three services. Currently, the board sets a cap on the rate, but banks are under no obligation to disclose the ratios they use.

In March, the main banks in the country even suspended new payroll contracts after the CNPS reduced the interest rate limit from 2.14% to 1.70%.

After a series of negotiations, the CNPS approved a new resolution, on March 28, changing the interest limit to 1.97% for payroll and 2.89% for credit cards and payroll cards.

With the impasse, the INSS payroll loan concessions fell 40.5% in March, according to data released by the Central Bank.

This Thursday, the CNPS approved other measures in the unanimously approved resolution.

• Disclosure of the total effective cost in the payroll

• Disclosure of the date of the first discount

• Disclosure of the amounts of tax on operations and resources paid as debt (original debt balance) when contracting through portability or refinancing

• Daily information on rates offered for new operations

• Availability in the Meu INSS application of the amount of interest rates offered by financial institutions for new payroll loan operations, payroll credit card and payroll benefits card

• Disclosure in the Meu INSS application of the number of the SAC (Customer Service) or CAC (Consumer Service Center) of financial institutions

The council also approved another resolution that asks the Central Bank to reduce the reporting interval that discloses the average interest rates practiced by financial institutions. Currently, the interval is about 15 days.

“We defend conscious credit by encouraging citizens to fully understand all the information linked to the loan contracting process. We want to facilitate access to the population in line with maintaining economic viability for financial operators”, explained the Minister of Social Security Social, Carlos Lupi, who is also president of the CNPS.

A Sheet sought the INSS and Febraban (Brazilian Federation of Banks), but did not receive a response until the publication of this text.