The INSS payroll loan or payroll deductible loan from the INSS has been the great lode of low risk credit lines in this country, the operation is guaranteed by the discount of the installments in the payroll of the retiree and pensioner with retirement or pension by the INSS. The payroll-deductible loan was created in the then President Lula da Silva’s government, at the time Banco BMG obtained the exclusivity for three months, enough time to keep it as the largest private bank in the payroll grant for years running.
During these nearly 7 years of INSS beneficiaries many credit companies were created, thousands of correspondents and financial agents were accredited to attract new contracts and loan refinancing, and hundreds of thousands of credit salesmen and brokers emerged, , many and many direct and indirect jobs were conceived thanks to competition between banks.
At the outset, few private 1st and 2nd tier banks dominated payroll operations, but when public banks (BB and Caixa) saw that it was more than a promising market, the unbridled cannibalism of these institutions placed low constitutional rights, citizens and the taxpayer to borrow money wherever they wanted and from then on.
Changes in payroll inss
Many changes have been made to make the INSS payroll loan operation safer, more practical and affordable for all beneficiaries, including reducing interest rates to the levels they are at today. However, the federal government is promoting a campaign that should include more changes in the payroll for retirees and pensioners of the INSS (National Institute of Social Security).
The Ministry of Social Security together with the INSS and the Central Bank are willing to place commercial rules on operations carried out by private banks, financial institutions and credit unions. According to the bodies, the main objective is to lower interest rates still higher at 2.14% of the maximum and 0.75% of the minimum, despite the fact that the media reports interest of 0.75%, with this rate only possible contracts of 6 installments, then we can only conclude that it is pure illusion.
The ease that the INSS payroll loan brings to the bank and the borrower justifies the low rate, the credit risk is almost zero, and the discount of the installments is automatic in the retirement or pension every month as long as the loan agreement is in force.
The rules that are being created by the Ministry of Social Security in conjunction with the INSS and the Central Bank are expected to reach the direct and indirect service providers of the system, my impression is that the real intention seems to be to reach the famous pasties ( sellers and credit brokers who do the door-to-door intermediation between the borrower, the banking correspondent and the creditor institution, a love triangle that the government wants at all costs to undo.
How does commissioning work?
The bank or financial institution authorizes a company to act as a bank or non-bank correspondent who in turn contracts without employment bond sellers, brokers or loan officers who are called “walleye.” What no one says is that the wallets are the ones who truly make and unwind the contracts, to deliver them to the correspondent who in turn sends them to the bank or creditor institution.
In the transaction, the gain on the payroll deductible loan INSS is divided into three parts:
1st person -) The Creditor Institution – takes its share through the Spread of the operation.
2nd person -) The Bank Correspondent – earns the commission with the intermediation of payroll that ranges from 1% to 10%, and can reach 11% up to 14% and awards (cars, motorcycles, computers, laptops, tablets, iphones, cell phones, etc.) and cash bonuses when they reach stipulated goals.
3rd person -) The broker (wallet) works on his own, goes out in search of new contracts, renewal of loans, refinancing and even intermedia portability of loan to arrange a change for his client. In exchange for your work you receive a commission that is combined with the bank correspondent.
Here we have a relationship where everyone wins, a free and independent market that must be submitted for reasons unsatisfactory or orthodox, the intention is to impose rules on the remuneration that banks pay to intermediaries, they want to limit the commission to 10% of the value of credit granted.
What surprises me and the fact that when reading various reports on this subject, a person always disappears, the 2nd person is not the 3rd person. The correspondents are not “pastinhas”, they are authorized intermediaries and regulated by resolutions number 3.110 and 3.954 of the Central Bank of Brazil, and as far as I understand, there is much, much more information truncated in the media.
Intervention on commission
The most intriguing is that the body wants to impose even the way the payment should be made, the rule requires that same commission be paid to the correspondent according to the duration of the INSS paycheck credit contract – what madness is that? The idea is very simple, this is to prevent the broker to transfer the loan to another bank or in cases of early debt settlement the correspondent would no longer receive the commission. Just forgot to understand that the borrower also takes out loan on their own and whoever requests the bank transfer with the purchase and sale of debt or portability is also the client, just to get a cash back.
I’ve never seen such an absurdity, saying that if you cut or cut commissions from intermediaries, banks will reduce loan costs – tell me how? In the view of those responsible for the Ministry of Social Security (MPAS), if there is a limitation on the remuneration of bank correspondents and “pasties”, the banking, financial and credit institutions will cut interest from the INSS payroll loan , since credit will be lower with commissions made to intermediaries, 2nd and 3rd person.
Harassment of beneficiaries
The Ministry insists that the harassment of loan sellers and brokers and banking correspondents whom they call service providers, incites retirees and pensioners to credit, that is, they are inducing and contributing to the excessive indebtedness of the beneficiaries, seriously, those who believe in this story, INSS retirees and pensioners are indebted because they do not have enough retirement money to live a dignified life, and they envisage a cheap solution to remedy the financial deficiency inherited by the current and previous governments.
What Aneps says
According to Edison Costa, president of the National Association of Credit Promising Companies and Correspondents (Aneps), the rules and changes would have little effect in aiding the fall in interest on payroll deductible loans to the INSS . He also said that the 10% commission is already practiced by most banking and financial institutions. This amount is in the measure of the Ministry.
Let’s wait for what will happen … If you work with payroll and want to state your well-formed opinion on this matter or any other related to payroll deductible credit, send your agenda in the email [ contact aredondo William Tell ] or request information on how to post here on Blog, we will give credits and links.