Brazil Supreme Court Upholds Consumer Protections in Loan and Vehicle Cases

Brazil's Superior Court of Justice (STJ) affirmed a lower court ruling that prohibits banks from offering payroll‑linked loans to retirees and pensioners through unsolicited home visits. The court held that such practices are abusive, violate consumer protection statutes, and that banks are objectively liable for the actions of their agents.

In a separate decision, the STJ unanimously ruled that a clause allowing up to 90 business days for payment of compensation under a mutual vehicle‑protection contract is not abusive. The court applied the Consumer Defense Code to the contract, stating that the nature of the service, not the legal form of the provider, determines consumer‑contract obligations.

Both rulings reinforce stricter consumer‑rights enforcement in Brazil, extending liability to financial institutions and clarifying contractual timelines for protection services.