The president of the National Institute of Social Security (INSS) in Brazil, Gilberto Waller Júnior, has publicly labeled the Credcesta credit card, which has been operated by Master in recent years, as an irregular financial product. He explained that this consigned benefit card is not legally supported and raises concerns about the possibility of interest being charged on interest in the contracts made by borrowers. This revelation threatens the legitimacy of the operations that have been a significant growth driver for Master, especially following the company’s recent financial difficulties.

The Credcesta product, which was established in 2018 by Augusto Lima, involved a capital partnership with Daniel Vorcaro at Master and has expanded its reach across 24 states and 176 municipalities, primarily targeting public sector employees at state and municipal levels. The model gained further traction in 2022 when it was adopted by the INSS during the Bolsonaro administration, allowing pensioners and retirees to access this type of consigned credit through a provisional measure that facilitated loans.

As part of a technical cooperation agreement with the federal government that lasts from September 2020 to September 2025, Master has been involved in various consigned credit lines under INSS. However, the recent findings about the irregular nature of Credcesta contracts raise significant questions regarding the future of these agreements and their compliance with applicable financial regulations. This situation could lead to widespread cancellations of contracts and may necessitate an overhaul of how such financial products are managed by institutions involved in public employee finance.