The Public Prosecutor’s Office of Bahia (MP-BA) has filed a civil lawsuit against Nubank, accusing it of abusive credit practices.
The allegations claim that the bank pushes its customers into over-indebtedness by failing to inform them of the risks associated with taking a credit and adopting other illegal behaviours, according to Farol de Bahia.
The case against Nubank
The MP’s investigation uncovered several violations, including offering loans without the customer’s request, collecting on already paid debts, and imposing unauthorised instalment plans, as well as charging disputed purchases and failing to offer alternatives for early repayment or debt amortisation, as required by law. Additionally, according to the lawsuit, complaints were also filed about the application of excessive interest rates, which were be considered abusive.
Prosecutors alleged that some customers were required to pay debt without having requested or authorised the funds, nor having access to the money allegedly made available by the bank. The MP-BA asked the court to require Nubank to offer clear information about its products and credit, assess the consumers’ real financial condition before granting loans, and ensure the preservation of an existential minimum to prevent over-indebtedness.
Other requirements include the renegotiation, amortisation, and early settlement options without hidden and extra fees, and immediate card cancellation through different channels if the client so requests, as well as an improvement to the bank’s customer service. Additionally, the agency proposed a Conduct Adjustment Agreement (TAC) to Nubank. However, the company declined to sign the term.
The whole initiative is based on the Over-Indebtedness Law, which guarantees greater consumer protection against abusive credit practices and determines the preservation of minimum conditions for financial survival.
