Court orders banks to suspend retirees' loan debts

The Federal Court of the Federal District made a decision that will benefit many retirees and pensioners, who took out loans in the form of payroll loans, the decision pleased many.

According to this week's G1 publication, Justice, thinking about the well-being of retirees, ordered banks this Monday (20) to suspend the collection of installments on loans granted to retirees.

The measure took many people by surprise, including many bank employees. However, it's worth noting that the decision is valid for four months and was made due to the novel coronavirus pandemic. The decision also means that institutions will not be able to charge interest or fines.

We know that, in fact, the elderly are among the groups most vulnerable to the coronavirus and, in the understanding of Judge Renato Borelli, of the 9th Federal Civil Court, who decreed it, the measure will mean that the elderly will not need to leave their homes and, therefore, will not expose themselves to risks, which is great!

In the clarification, the Judge informed that “It is a necessary measure to ensure that the elderly, affected in greater numbers by the fatal consequences of Covid-19, can afford the necessary medical treatment.

But what about those retirees who need to take out a loan?

In this regard, you will need to contact the banks or financial institutions that are issuing loans to better understand what the new loans will look like.

According to the court's decision, this is reflected in the loans made, not in future loans.

Important points about the court's decision