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TCU’s precautionary decision halts new INSS payroll loans, affects modalities used by retirees and pensioners, sparks reaction from ABBC, Febraban, and Zetta, and reignites the debate on fraud, control failures, low income, regulated credit, and financial protection for vulnerable beneficiaries.
The suspension of INSS payroll loans has opened a new front of tension between the financial sector and public authorities. On Monday, the 4th, the Brazilian Association of Banks, the Brazilian Federation of Banks, and Zetta released a joint statement against the effects of the Federal Court of Accounts’ precautionary decision.
According to ABBC, Febraban, and Zetta, the measure caused “great concern, surprise, and insecurity”. The entities’ assessment is that the halt affects a regulated market, frequently used by retirees and pensioners, especially low-income beneficiaries.
TCU ordered immediate suspension of new operations
On Wednesday, the 29th, the TCU determined that the INSS should immediately suspend new payroll loan concessions. The order affects the modalities of payroll credit card and benefit payroll card.
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At the same time, the decision also halts new personal payroll loans. However, this modality can only be resumed after the implementation of safeguards and control mechanisms in the operations.
According to the court, significant indications of fraud and control failures were identified. Therefore, the court pointed out a risk of harm to retirees and pensioners until the weaknesses were corrected.
Regulated market moves R$ 100 billion per year
Although acknowledging the need to combat fraud, financial entities criticized the scope of the suspension. For ABBC, Febraban, and Zetta, it is essential to reduce risks of fraudulent activities, curb undue contracts, and correct operational failures.
However, the institutions state that the halt interrupts a market that moves approximately R$ 100 billion per year. According to the note, INSS payroll loans also involve approximately R$ 9 billion in monthly discounts.
As a result, the suspension could primarily affect a population of low income and high financial vulnerability. In the entities’ assessment, the decision could compromise beneficiaries’ real and recurring financial needs.
Retirees and pensioners depend on the credit line
Currently, about 4 out of 10 retirees and pensioners have payroll loans, according to the statement released by ABBC, Febraban, and Zetta. This group represents approximately 17 million people.
The total portfolio of this modality amounts to R$ 283.9 billion in credit, distributed across 65.4 million active contracts. Still according to the entities, the average INSS payroll loan rate is 1.82% per month.
The note also cites a survey by Nexus Research and Data Intelligence, conducted in February. According to the survey, 56% of INSS payroll loan borrowers resort to the line due to immediate or urgent financial need.
For this reason, the entities state that the generalized interruption could affect those who use credit to replace more expensive debts, pay medical expenses, organize household bills, or restore family liquidity.
Entities request less comprehensive measures
Despite classifying the measure’s intention as meritorious, ABBC, Febraban, and Zetta advocate for more calibrated alternatives. According to the institutions, the precautionary decision disregarded a technical recommendation from the Specialized Audit Unit for Social Security, Assistance, and Labor of the TCU.
In this recommendation, the court division warned that the suspension could prevent vulnerable individuals from accessing credit. Therefore, the entities advocate for specific measures, without a generalized blocking of the offer.
Among the alternatives cited are strengthening supervision by financial institutions, blocking agents suspected of irregularity, applying fines, reimbursements, audits, and continuous monitoring of complaints.
Cooperation agreements with infringing institutions were also mentioned. In the entities’ view, these measures could preserve beneficiary protection without completely interrupting the market.
Self-regulation has already reduced complaints, say banks
According to the note, recent changes in the operational model of INSS payroll loans have already helped address some irregularities. Febraban’s self-regulation with ABBC applied 1,173 warnings and 899 temporary suspensions.
In the same process, 130 banking correspondent companies were banned. Another 14 credit agents, identified by CPF, were suspended for 12 months.
With these measures, complaints on consumidor.gov.br fell by more than 60%, according to the entities. The volume decreased from 1,710 registrations, at its peak in June 2025, to 623 complaints in December.
Financial sector wants to modulate effects of decision
Now, ABBC, Febraban, and Zetta state that they will seek the modulation of the effects of the precautionary decision. The objective is to preserve beneficiary protection, but avoid the total suspension of payroll loan offerings.
Therefore, the financial sector advocates for the gradual and verifiable adoption of controls compatible with the rationale defined by the TCU. Meanwhile, retirees and pensioners remain at the center of a dispute involving credit, supervision, security, and financial predictability.
Ultimately, how can vulnerable beneficiaries be protected without completely blocking a credit line used by millions of people for urgent needs?
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