By Brazil Stock Guide – The Brazilian social security system (INSS) has suspended Banco Master from issuing new loans to pensioners following a significant number of complaints regarding improper charges and complications in canceling loans. The INSS decided not to renew its Technical Cooperation Agreement (ACT) with the bank, halting its operations in the credit segment. This preventative measure is set to remain in effect while investigations into the complaints continue.
The INSS’s decision follows reports of various irregularities, including unauthorized charges, difficulty canceling loans, and violations of procedural norms such as the lack of biometric authentication and the improper handling of documentation, according to Broadcast. The INSS also ordered Dataprev to revoke Banco Master’s access to the loan systems, signaling a severe blow to the bank’s operations.
Banco Master, which is linked to Daniel Vorcaro, has been struggling financially, and this setback follows recent regulatory challenges. The Brazilian Central Bank recently blocked the sale of Bluebank, its subsidiary, to investor Maurício Quadrado, due to concerns over the deal’s economic viability. The financial difficulties add to the mounting pressure on Banco Master, as its future operations depend on resolving these regulatory issues.