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On the night of last Monday, the 11th, the Federal Supreme Court (STF) unanimously declared that the loan proposed by Bolsa Família complies with the Constitution.
Thus, the idea of providing payroll-deducted loans to low-income families aligns with current law.
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Soon after the STF's decision, the Minister of Social Development gave his opinion on the matter.
It is crucial to emphasize that, in 2022, legislation proposed by then-President Jair Bolsonaro (PL) approved the offer of loans within Bolsa Família, which at that time was called Auxílio Brasil.
In addition, this legislation extended this opportunity to all participants in social programs, also encompassing the Continuous Cash Benefit (BPC). This choice sparked intense debate and divergent opinions.
Thus, the STF's recent decision confirms this action, stating that loans made through the Bolsa Família program comply with the Constitution.
This represents a significant milestone in Brazil's social strategy and will certainly keep discussions heated among various segments of the population.
Would you like to deepen your understanding of this new guideline approved by the administration? Keep following us and have all your questions answered.
Read also: Bolsa Família announces the introduction of debit cards to facilitate payments
Differences of opinion following the approval of payroll-deducted loans in this scenario
The Democratic Labour Party (PDT) expressed its concern about the credit made available to low-income citizens, particularly those linked to Bolsa Família, with direct deductions from their income, which is essential for their survival.
The party argues that this initiative could violate these people's rights. It could also lead to excessive indebtedness, since they lack adequate financial education.
As a result, proceedings were initiated seeking a declaration that this financial service is illegal.
However, the Federal Supreme Court (STF) unanimously confirmed that credit associated with Bolsa Família is legitimate. This indicates that financial institutions, which had paused this offering at the beginning of the year, must now resume it.
By November of last year, through the Auxílio Brasil program, a total of 3,484,354 loans had been issued.
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Information obtained through the Access to Information Law indicated that 16.5% of the program's beneficiaries opted for payroll-deducted loans.
In this scenario, they could commit up to 40% of the total benefit amount, which at the time was equivalent to R$ 400, to repay the loan.
Payroll-deducted loans will become available to Bolsa Família beneficiaries
Read also: Bolsa Família Withdrawal Without Documents Shocks Brazilians
This Wednesday, September 13, they published a regulation that raised the possibility of the return of payroll-deducted loans for those eligible for the Continuous Cash Benefit (BPC).
However, the idea of reinstating loans for Bolsa Família participants was quickly rejected by the Minister of Social Development (MDS), Wellington Dias.
In this regard, the minister categorically stated that the debt deducted directly from the benefit will not extend to Bolsa Família members.
This stance, as mentioned earlier, contradicts the decision of the Federal Supreme Court (STF), which indicated that this group could benefit.
It is vital to emphasize that Dias justified his choice by recalling that the program aims to support families in need and that allowing them to commit a portion of this assistance to loan repayments could threaten the program’s essential purpose.
He argued that this action could potentially place families in adverse financial situations. Thus, it would compromise the nature of Bolsa Família as a tool for providing financial protection to the most vulnerable.
Therefore, although the regulation reopens the possibility of payroll-deducted loans for BPC beneficiaries, those dependent on the program will not have this financial resource available.
It is crucial to underline that Dias’s decision establishes a clear distinction in payroll-deducted loan policies between the different groups covered by government social programs.
This highlights the concerns regarding financial stability and the specific purposes of each program.
In any case, the minister stated with conviction when questioned about this issue by Globo…
“We do not view payroll-deducted loans for Bolsa Família favorably“.
