Government sets an Existential Minimum of BRL 303 per month and generates controversy

The federal government published a decree setting the Existential Minimum in 25% of the minimum wage in force, or R$303 currently. The measure adopted to regulate the Consumer Defense Code (CDC) regarding over-indebtedness caused a lot of controversy.

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The Existential Minimum is the value that must be preserved for the consumer when he carries out debt negotiation. Although the level is not subject to future adjustments, experts say that no Brazilian can live with this amount.

“No person is able to survive on this amount, which is equivalent to R$ 10.10 a day. This decree is absurd, because it empties the Over-indebtedness Law that was passed to protect the consumer”, said lawyer Walter Moura, from the Brazilian Institute for Consumer Protection (Idec) in the Federal District.

Approved in 2021 by Congress, the Over-indebtedness Law serves to protect indebted citizens who want to renegotiate their debts with creditors, explains Moura. The Existential Minimum is the guarantee that the individual will continue to have enough to live on while paying off the debt.

Idec plans to go to court to overturn the decree, which affects about 40 million over-indebted people. “We are studying an action. The Law of Over-Indebtedness was supposed to be a good thing, but it didn’t predict the value of the Existential Minimum. Now, with this decree, as a fable from Paraíba would say, the consumer won a brown sugar, but in the head”, he lamented.

Banks should not change process

For Miguel Ribeiro de Oliveira, executive director of Economic Studies and Research at Anefac, banks should not change their rules, even with the decree. Currently, institutions do not grant credit to those who have more than 25% of their income committed to loans and financing.

“Of course, this depends a lot on the issue of debt and the income of each consumer, but, even in judicial matters, the bank is interested in receiving and will not make an agreement for the payment of a debt if the indebted person is not able to pay. survive,” he explained.

The Civil House has not yet commented on the matter. The Ministry of Economy said, in a note, that the regulation has the “purpose of protecting the financial consumer from the condition of over-indebtedness and, at the same time, ensuring the right to financial citizenship for people with lower incomes, with the possibility of greater access the formal credit market and the banking process”.

“With this, the necessary standardization is obtained for the application of this concept in a uniform and unequivocal way throughout the national territory, contributing to greater legal certainty in credit relations and mitigating risks of judicialization, which, finally, favors greater predictability of the performance of economic agents and the sustainable development of the financial market”, he added.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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