Brazilian banks fined for consumer protection violations

Major Brazilian banks have faced significant fines from consumer protection agencies regarding irregular financial practices.

In Ceará, the State Program for Consumer Protection and Defense (Decon) fined Bradesco and Itaú Unibanco a combined total of over R$ 1.7 million. The penalties, resulting from 34 administrative decisions, cite abusive practices, failures in service provision, and failure to meet information duties. Identified irregularities include unauthorized payroll loans, improper charges, sale of insurance without consent, and social engineering fraud. The agency noted that penalties were increased due to the involvement of vulnerable consumers, including the elderly and persons with disabilities.

In Minas Gerais, Banco do Brasil was fined R$ 5.43 million by Procon-MG. The penalty follows investigations into the inclusion of insurance in payroll loan contracts without clear consumer consent. Investigations revealed that many customers were unaware they had acquired insurance or believed it was a mandatory requirement for loan approval. While Banco do Brasil contested the findings, arguing that insurance was optional and information was provided during online transactions, the consumer protection agency maintained that consent was not sufficiently demonstrated.