New decision on credit cards and consumer loans

In a statement made by the institution, it was stated that the BRSA found it appropriate to restructure the debt balances of individual credit cards and consumer loans to 48 months, shortening the maturity and application periods and envisaging a faster process with less cost.

In the statement, it was stated that individual customers must apply for restructuring within 3 months for this restructuring, and that "individual credit card customers who cannot pay their period debt partially or completely, consumer loan customers whose principal and/or interest payments are delayed, and individual credit card and consumer loan customers who have previously been restructured will be able to benefit from the restructuring."

In the statement, it was emphasized that in the restructuring of credit cards, the relevant bank will not increase the card limit until half of the debt is paid, and in the restructuring of consumer loans, no loan will be provided that will exceed the existing debt balance.

Within the scope of the decision taken, it was reported that the Central Bank of the Republic of Turkey (CBRT) determined the maximum interest rate to be applied to credit card restructuring transactions as 3.11 percent.

The statement provided the following information regarding the changes included in the BRSA's new decision compared to the previous one:

In credit card restructuring, not only those whose minimum payments have not been made, but also individual cards whose period debt has not been paid partially or fully, can be subject to restructuring. The overdue period for consumer loans has now been updated from "exceeding 30 days" to "any overdue payment." For both credit cards and consumer loans, the scope of restructuring, previously based on the outstanding balance as of the decision date, will now be the outstanding balance as of the restructuring date. Even loans restructured before the decision date will be eligible for restructuring, even if they are not overdue.

AA