INSS payroll loan: banks will have to disclose interest – 06/02/2023 – Market

As of this Friday (2), banks must disclose the interest rates offered in new contracts for payroll loans from the INSS (National Social Security Institute), payroll credit card and payroll benefits card.

The information must be made available for consultation through the Meu INSS application or website and will have to be updated daily. However, there is still no forecast as to when the beneficiary will have access to this data, since the availability in Meu INSS depends on Dataprev (a technology company of the federal government), which will receive the information from the banks.

Banks will also be required to disclose the number of the SAC (Customer Service) or CAC (Customer Service Center) so that policyholders can clear up doubts.

The rules are contained in a normative instruction published by the INSS in this Friday’s edition (2) of the Official Gazette. The changes aim to increase transparency in payroll operations and were approved in a resolution by the CNPS (National Social Security Council) in early May.

“By the text, the banks will have to start informing. Now, when it will be made available (in Meu INSS) depends on Dataprev. It should not take effect immediately”, explains Tonia Galetti, coordinator of the legal department of Sindnapi (Sindicato Nacional dos Aposentados, Pensioners and Seniors).

Until then, interest rates on payroll loans were disclosed by the Central Bank, but rates used to be lagged in relation to what is being practiced by the market, since there is a lag between the offer of the rate, the information that the bank provides to the BC and the disclosure made by the monetary authority. Financial institutions were also not required to report the interest charged.

Banks also begin to expose to the contracting party the remaining balance of the debt in any of the operations related to the INSS payroll. Currently, it is possible to see in My INSS the payroll statement with the number of loan installments taken out and whether there is room for new hires.

In Meu INSS, the institute details what the extract brings: “It is the document that brings the information of the loans that are discounted in your INSS benefit. hires”.

Another change is that the financial institution will have to include the following information in the data passed on to Dataprev:

1. Monthly and annual interest rates

2. First discount date

3. Monthly and annual CET (total effective cost) of the operation

4. Amount paid as a customer debt (original balance due) when the operation is portability or refinancing

5. Value of IOF (tax on financial operations) of each operation

Banks that do not comply with these new resolutions may be punished with a warning, suspension and, in case of recurrence, a ban on signing new INSS payroll loan agreements.

The discussion around payroll gained strength in March, when the CNPS announced a reduction in the interest rate to 1.70% per month. The action led major banks to suspend the offer of new contracts.

Ministers and President Luiz Inácio Lula da Silva (PT) began to mediate the negotiation, which lasted until the end of the month, when the proposal was accepted to raise the interest rate to 1.97% monthly in payroll and 2.89% for the payroll credit card and the payroll benefits card.

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