A short time ago, the federal government released a document in which an existential minimum was established for the Brazilian people. In short, this is a novelty related to the Over-indebtedness Law, which even though it was approved more than a year ago, had not yet established a fixed amount for those with overdue debts. This value was determined at ¼ of the minimum wage, that is, approximately R$ 303.00. However, this amount ended up generating a lot of criticism from experts and also entities that are linked to consumer law.
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To clarify in a better way, due to this law that was approved, the amount of R$ 303.00 would be the minimum of the citizen's income that needs to be safeguarded in cases of debt renegotiation. Basically, in agreements made with banks or other creditors to be able to pay off some overdue debt, this amount cannot be used. The minimum value of R$ 303.00 has been seen as the smallest amount that the Brazilian people would need to be able to support themselves. This new rule established by law is valid from this month of September, about 60 days after its publication.
In summary, the debts that were already negotiated before this decree or that were contracted from the request for a payroll loan end up not entering the existential minimum. This rule also applies to loans related to some production or entrepreneurial activity, financing installments, secured loans and rural credit.
Still on the same subject, according to Ione Amorim, current coordinator of IDEC's Financial Services Program, this regulation came to benefit financial institutions.
“The government created the law a year ago and now defines the existential minimum of 25% based on the current minimum wage, which is equivalent to R$ 303, less than the average value of the Brazil Aid. That is, it practically grants banks the management of 75% of consumer income ".
And last but not least, lawyer Rômulo Saraiva said the following:
“Before, there was the understanding that only 30% of income should be affected and leave 70% free for the person to survive at the end of the month. Bolsonaro reversed this logic, to the delight of financial institutions and lending companies.”. Because of this law, therefore, any type of pressure on debtors and harassment involving rewards to consumers, especially for people who are illiterate, elderly or vulnerable.
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