INSS Strikes Binding Deal With BMG to Repay R$7 Million and Reform Payroll-Loan Practices

Overview

• More than R$ 7 million charged improperly will be returned to about 100,000 beneficiaries by offsetting amounts on upcoming loan or card bills.
• BMG must implement recorded video-call confirmations for all consignado contracts within 90 days to document clear customer consent.
• The bank is required to halt tied sales of insurance linked to consignado products and to refrain from sharing beneficiaries’ personal data without authorization or legal basis.
• Credit limits must comply with the 1.60× income cap, with manual controls in place until systems are updated, and the bank must work to cut complaints across service channels.
• The agreement runs for an indefinite term and allows sanctions for breaches, and the INSS is pursuing similar measures with other lenders after preventive suspensions published in the DOU.