There were 12 companies warned in October, compared to 4 in September, according to banking sector entities
In October, 12 companies were warned for abuses in offering and contracting public and private payroll loans – an increase of 200% compared to the 4 warnings registered in September.
Commercial harassment and fraud are in the crosshairs of (Brazilian Federation of Banks) and the (Brazilian Bank Association), which since March 2020 has already applied 1,051 warnings, 810 temporary suspensions and 113 definitive ones.
The self-regulation of payroll loans brings together entities in the banking sector in actions to contain commercial harassment and fraud in the offering of payroll loans.
The rules are aimed at transparency, combating commercial harassment and the qualification of banking correspondents, which apply to payroll loans, payroll cards and benefit cards.
Violations of the rules can result in fines for financial institutions ranging from R$45,000 to R$1 million. According to Febraban, the amounts collected are destined for financial education projects.
“Self-regulation measures have contributed to raising the level of confidence in the payroll-deductible credit market and reinforce the efforts and commitment of banks to combat irregularities in the supply and contracting of credit. We will not give respite to those who break the rules and commit abuses”said Isaac Sidney, president of Febraban.
“The increase in sanctions confirms the effectiveness of Consigned Self-Regulation in strengthening discipline and compliance of operations. This advance preserves the integrity of the modality, increases transparency and ensures compliance with standards. By adhering to the self-regulation guidelines, institutions raise standards of ethics, governance and data protection, strengthening market trust and sustainability”disseminated Lendro Vilain, CEO da ABBC.
