The MP announced by President Lula on March 2, Thursday, did not bring changes related only to the Bolsa Família program, but also in relation to the BPC or INSS Continuous Payment Benefit. This is said because the Provisional Measure provides that the assigned credit linked to the benefit will be suspended.

From then on, since March 6, the INSS blocked the release of credit. With the blockade, banks and financial institutions across Brazil are prohibited from negotiating the payroll option. The INSS made the end of the operation official in a publication in the Official Gazette of the Union.

The consigned credit for the BPC was instituted in March 2022. In short, BPC beneficiaries could contract and commit up to 40% of the benefit with the consigned credit, which is deducted directly from the payroll.

This novelty was part of the Income and Opportunity Program, launched by the government in an election year, seeking to secure the re-election of former president Jair Bolsonaro.

The MP, announced by the Lula government, changes code 26, a law published in 2003, which had been changed by the Bolsonaro government's MP, which was approved in congress.

In the ordinance published by the INSS, it is described that financial institutions are “prohibited from executing new endorsements or commands that contemplate the operationalizations” of monthly payment of loans, financing, credit cards and leasing operations.

The measure was well received by experts, who criticized the release at the time. In fact, there was an intervention by the Public Defender's Office and bodies that protect citizens' rights.

According to Social Security specialist and Folha columnist, lawyer Rômulo Saraiva, the cancellation was correct. According to him:

“It doesn't make sense for beneficiaries of federal income transfer programs, people who somehow failed to plan for financial autonomy, to have the government's approval to acquire loans with degrading interest rates.“.

Furthermore, Saraiva argues that “The measure ensures that federal funds are better applied, avoiding the over-indebtedness of families in situations of social vulnerability“.

Finally, the president of Ieprev, Roberto de Carvalho Santos, states that the cancellation protects the income of the most vulnerable. He justifies: “The allegations are that this was causing more harm than good. Furthermore, on a daily basis, we observed that these people were quite harassed by banks and financial institutions.“.

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