New rules on credit cards spark debate across Turkey
ANKARA – Anadolu Agency
The BDDK has launched new regulations for credit card use.The banking watchdog’s new regulations putting stricter rules on credit card limits and payment installment limits have sparked debate, with some welcoming the new regulations but others criticizing the new limits on installment numbers.
Using credit cards for the purpose of borrowing, instead of making payments, negatively affects both households and the country’s economic indicators, Ankara Chamber of Commerce (ATO) Salih Bezci said, adding that the ATO would support all measures against this situation.
Bezci stated that it was positive that the card limit for people applying for a credit card would not be determined according to their income and that installments would be limited for some product groups. “We think that these two regulations will contribute to the more efficient use of income, and consequently expenses will be more balanced,” he said.
However, he also stressed that with the limits to payment installments, product features and their convenience for commercial life should also be considered. As checks are no longer accepted as a safe payment system, credit cards are more commonly used in commercial buying and selling, and this should be considered in payment installment limits.
People ‘have to’ use credit cards
Consumer Rights Association (THD) President Turhan Çakar stressed that the majority of people in Turkey even shop for food with credit cards as they have to. “Many people have three or four credit cards. While the citizens buy food products by installment, it is really worrying that the installment numbers are limited for buying more expensive durable goods [furniture and white goods],” Çakar said.
Turkey’s banking watchdog, BDDK, announced last week that the card limit for people applying for a credit card would not be permitted to exceed twice the amount of their monthly income in the first year of ownership. According to the new rules, the limit will increase to a maximum of four times the applicant’s income in the following years.