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INSS Strikes Deal With Three Lenders to End Insurance Add‑Ons and Allow Consignado to Resume

The agreement sets due‑process refunds for consumers under tighter oversight of payroll‑deductible credit.

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Overview

  • Banco Inter, Facta Financeira and Cobuccio signed a term of commitment with the INSS that permits a resumption of consignado operations while administrative cases continue.
  • The lenders must immediately stop charging or offering prestamista insurance, by any name, in new contracts and refinancings tied to INSS benefits.
  • Any amounts found to have been improperly charged will be returned after administrative proceedings that guarantee full defense and adversarial process.
  • The INSS had halted new consignado registrations for these institutions on October 15 during an inquiry into possible improper insurance sales.
  • Officials describe the move as part of a broader cleanup of consignado practices, citing a prior deal with BMG to reimburse beneficiaries and recent product changes at other banks.