The public cannot pay for tainted money, says Procon.
The entity is challenging the Central Bank for not accepting banknotes damaged by an anti-theft device.
The Consumer Protection and Defense Foundation in São Paulo (Procon-SP) challenged the Central Bank's (BC) decision not to accept Brazilian Real banknotes damaged by anti-theft devices as a means of payment. On Wednesday, the National Monetary Council (CMN) and the BC approved regulations regarding the fate of damaged banknotes that have become invalid. The aim of the measures is to hinder the circulation of stolen banknotes and help reduce cases of theft and robbery at ATMs.
According to Procon-SP (São Paulo's consumer protection agency), this private security measure should not be passed on to the public. Furthermore, the damaged banknotes are already circulating in the market, including at points of service of financial institutions, such as ATMs. Therefore, the agency requested clarification and adjustments to the regulations to comply with the Consumer Protection Code, which presupposes good faith.
Anyone receiving a damaged banknote should hand it over to a bank branch. The money will be sent for analysis, and if it is proven that the damage was due to the anti-theft device, the bank will notify the holder. The money will not be reimbursed. Procon-SP (São Paulo's consumer protection agency) recommends that consumers remain vigilant and not accept any suspicious banknotes.