Brazil proposes law to protect workers from financial harassment

Bill 3150/26, known as the Indebted Worker Defense Law, is currently under analysis in the Brazilian Chamber of Deputies. The proposal aims to protect workers' wages and subsistence funds from abusive credit practices, non-consensual renewals, financial harassment, and improper payroll deductions.

Key provisions of the bill include requiring express, individualized, and verifiable authorization for every credit operation. For digital contracts, it proposes a 48-hour reflection period between the offer and confirmation. The bill prohibits loan offers within workplaces or via corporate channels without authorization, as well as automatic contract renewals and unrequested insurance or fees.

Furthermore, the legislation defines financial harassment as abusive approaches involving psychological pressure, artificial urgency, or deceptive promises. It also restricts the use of employment-related data for loan offers without a legal basis. If passed by both the Chamber and the Senate, the law would amend the Consumer Defense Code and Law 10.820/03 regarding payroll-deductible loans.