The National Institute of Social Security (INSS) in Brazil announced on September 17 that it has suspended new payroll loan agreements with C6 Bank due to potential irregularities identified in contracts with beneficiaries. The estimated total affected is around R$ 300 million, reflecting concerns raised during a recent audit by the Comptroller General's Office (CGU). This audit uncovered at least 320,000 contracts that appeared to include additional costs such as insurance and service packages, which effectively reduced the net amount available to social security recipients, a practice deemed highly problematic by the INSS.

In its official statement, the INSS highlighted the severity of including extra charges within the contracts, which it argues amounts to a violation of the principles governing social security loans. The decision to halt new contracts is part of broader efforts to protect beneficiaries from potential financial exploitation. The INSS's actions reflect ongoing scrutiny of financial operations tied to government benefits, signaling an inclination towards stricter regulation within the sector to prevent similar occurrences in the future.

In response to the suspension, C6 Bank has publicly disagreed with the INSS's assessment, asserting that it operated within the legal framework and rejecting any claims of wrongdoing. The bank announced intentions to take legal action to challenge the INSS's decision, underscoring the conflict between the institution and the regulatory body. C6 maintains that the payroll loan service was never contingent on the purchase of additional products, indicating that the bank sees the allegations as unfounded and suggests the possibility of a significant legal battle ahead regarding these issues.