The National Institute of Social Security (INSS) in Brazil has announced the suspension of new payroll loans from C6 Bank after identifying that the bank had made improper charges to retirees and pensioners. This decision was published in the Official Gazette and comes in response to violations of an agreement that the bank had with the INSS. Oversight by the Office of the Comptroller General (CGU) highlighted these irregularities, which were corroborated by technical assessments of the INSS.

The INSS stated that C6 Bank had been charging fees for services that were not authorized by the beneficiaries, leading to these charges being directly deducted from their social security benefits. Despite having held multiple meetings in recent months to resolve these issues amicably, no agreement was reached, prompting the INSS to take decisive action against the bank.

As a consequence of this suspension, C6 Bank is prohibited from offering new payroll loans to INSS beneficiaries until the improper charges are rectified and the bank returns the unlawfully collected amounts with interest. This move underscores the INSS's commitment to protecting the rights of retirees and pensioners and ensuring that social security funds are managed properly and ethically.