Brazilian courts order Banco Pan to compensate victims of illegal payroll loan deductions

In Ceará, the 2nd Private Law Chamber of the Ceará State Court upheld a first‑instance ruling that Banco Pan must reimburse double the amounts wrongly deducted from a child’s disability benefit and pay R$5,000 in moral damages. The loan, a R$35,632.80 payroll‑linked credit signed in November 2022, was deemed irregular because the contract lacked required formalities and the beneficiary was functionally illiterate.

In Alagoas, the 1st Civil Court of Marechal Deodoro similarly condemned Banco Pan to pay R$8,000 in moral damages to a 78‑year‑old pensioner and to return twice the sums improperly taken from his pension under an alleged R$3,960 payroll loan. The judge found the contract unsigned and the documents fabricated, ordering the bank to declare the contract void.