Decree regulates consigned credit in Auxílio Brazil

President Jair Bolsonaro signed a decree that regulates the granting of payroll loans to beneficiaries of the Auxílio Brazil Program. The text was published today (12) in Official Diary of the Union.

The Ministry of Citizenship will also issue complementary rules for the start of operations and will be responsible for retaining the amounts authorized by the beneficiary of the program and for transferring them to the consignee financial institution. Payroll loans are those granted by financial institutions with automatic deduction of installments from the salary or benefit payroll.

Beneficiaries of Auxílio Brazil will be able to borrow up to 40% of the benefit amount and authorize the Federal Government to deduct the amount from the monthly transfers. According to the decree, responsibility for the debt “will be direct and exclusive to the beneficiary. The Union cannot be held responsible, even if subsidiarily, under any circumstances”.

“In the event that the value of the contracted consignments exceeds, alone or in combination with previous consignments, the maximum limit provided for by law, the installments relating to the oldest contracts will be discounted as a priority”, says the decree. In this case, partial discount will be allowed up to the established limit.

The law that authorized the granting of loans and financing within the scope of Auxílio Brazil was published on August 4th. From this month until December, the value of the benefit went from R$ 400 to R$ 600.

Translated to english by RJ983

From Brazil, by EBC News

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