STF releases payroll loans for beneficiaries of social programs

The Federal Supreme Court (STF) unanimously decided to maintain the possibility of taking out a payroll loan for beneficiaries of social programs, such as Bolsa Família. The vote, which took place in a virtual trial, ended on Monday night (11).

The action that attempted to block personal loans for beneficiaries of social programs was presented last year by the Democratic Labor Party (PDT). The party questioned a law sanctioned by former president Jair Bolsonaro that expanded the credit margin offered and allowed payment discounts to reach 45% of the value of benefits. The party’s claim was that the discount could lead to vulnerable people becoming over-indebted.

However, Minister Nunes Marques, rapporteur of the action, pointed out that the discounts are constitutional and highlighted that the law questioned by the party provides benefits for people in vulnerable situations.

“The author [PDT]when dealing with the damage to the financial reorganization of loan borrowers, appears to be based on the assumption that individuals or families do not obtain any advantage from taking out credit, when, in fact, they acquire immediate liquidity to pay off debts, spend on unavoidable expenses or invest in some plan that is always postponed”, declared the minister.

According to the terms of the decision, beneficiaries will be able to commit up to 35% of the minimum wage (currently R$1,320) to pay the loans, maintaining the rule that allows installments to be deducted directly from income programs.