Customers who took out loans with Banco Master, including through Master Luz, a personal credit line with installments deducted directly from their electricity bill, remain legally obligated to pay their debts, even after the declaration of the institution's extrajudicial liquidation.
Although many consumers have used the credit to install solar energy systems, Master Luz is not a technical financing linked to photovoltaic projects, but rather a personal loan, the repayment of which occurs through the energy bill, due to agreements signed between the bank and concessionaires in the electricity sector.
These agreements involved several distributors in different states, although the model does not have national scope.
Liquidation of Banco Master
Banco Master had its extrajudicial liquidation decreed by the Central Bank in November 2025, after investigations by the Federal Police pointed to a multi-billion dollar fraud estimated at R$12 billion, in addition to serious violations of the rules of the national financial system.
Before the intervention, the institution reportedly handled approximately R$ 1,45 billion in loans in just one year and served more than 1,6 million clients and investors, according to estimates released by sources close to the bank and the police investigation.
Debts remain valid.
According to the rules of the financial system, the liquidation of a bank does not extinguish existing loan agreements. These agreements remain valid and are then managed by a liquidator appointed by the Central Bank, who is responsible for managing the institution's assets and liabilities.
In practice, this means that:
- Loan payments should continue as normal;
- In the case of Master Luz, the debit on the electricity bill remains active, without automatic interruption;
- The amounts paid become part of what is known as the bank's liquidation assets.
In an interview with Canal Solar, Luiz Augusto Baggio, a lawyer specializing in Public and Constitutional Law, explained that the debts of Master Luz's clients remain valid even after the liquidation of Banco Master:
“Banco Master was intervened by the Central Bank due to a lack of liquidity, and subsequently, an administrator was appointed to manage all the institution's activities. This administrator's mission is to evaluate all the bank's debts and credits, including loans granted to clients, such as those of Master Luz,” explains Baggio.
“These loans constitute assets of the bank, which need to be collected to form a portfolio capable of paying creditors. Therefore, even after liquidation, Master Luz's clients remain debtors and can be charged if necessary. In legal terms, it's as if the debt of a deceased person continues to be valid to be collected by the heirs,” he added.
Where does the money go?
The funds raised from loan repayments are managed by the liquidator and used, among other purposes, to reimburse Banco Master's creditors and investors, including those entitled to coverage from the FGC (Credit Guarantee Fund).
FGC does not cover loans.
The FGC (Credit Guarantee Fund) does not cover debts of those who have taken out loans. The fund's guarantee is restricted to deposits and investments, up to a limit of R$250 per individual or corporate taxpayer ID (CPF or CNPJ). Loans are considered bank assets, meaning amounts that the institution is entitled to receive, and therefore are not covered by the fund.
Beware of scams and fake communications.
With the interruption of Banco Master's operations and the removal of its board of directors, any changes to payment information or potential renegotiations will be communicated exclusively by the liquidator, through the official website of Banco Master in liquidation or the official channels of the Central Bank.
Baggio warns that customers should be wary of unofficial contacts, especially those requesting deposits into different accounts or offering deals outside of formal channels.
Current situation
To date, the FGC has begun paying compensation to eligible investors, while the obligations of clients who took out loans remain unchanged.
To keep up with the updates, it is recommended to consult only official sources, such as... bank website in liquidation and the channels of central bank.
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