Turkey has comprehensive laws on the
protection of consumers’ rights. Two years ago I wrote an article about these
rights in the context of purchasing a property. This time I want to address
Consumer Rights in the context of banking services. Many of you will already
use banking services in Turkey and most likely a significant proportion of you
will also use specific banking services, such as a credit card, personal loan
or home purchase using a mortgage. This article relates to personal loans and
loans taken out in connection with the purchase of property.
When making loans the bank or
financial institution concerned must follow strict rules laid down in the laws
and regulations on consumer protection. The financial institution must ensure
that a written agreement is drawn up with the consumer and that the consumer is
provided with an original copy. The agreement must cover a range of points,
including the amount of the loan, the calculation of interest, the total amount
payable, the dates that repayment is due, any deposits, the amount of interest
payable upon default, terms and conditions that apply to earlier payment
possibilities, etc.
Independent on what was stipulated; a
financial institution cannot start making automatic collections unless the
customer has failed to make two consecutive repayments. The financial
institution must also give a non-paying customer one week’s notice in writing
(in case of personal loans) or one month’s notice in writing (in the case of a
mortgage) of their obligation to make repayments.
The loan agreement with the financial
institution may also be signed by a third party acting as guarantor, for
example your wife or close relative. The financial institution is not permitted
to make automatic collections from this person, until the customer’s personal
deposit has been used up.
Despite the law talking about
deposits, a financial institution cannot demand a senet’ from the customer. If
this does happen, you can claim a refund of the senet. Any loss arising from
the collection of a ‘senet’ by a third party, to whom the senet has been
surrendered by the financial institution, can be reclaimed from the financial
institution. I frequently encounter cases of financial institutions charging
the customer all sorts of costs under the guise of administrative charges,
expert costs, etc. Unless the financial institution can justify such costs with
a receipt or invoice, these kind of ‘major’ costs cannot be passed on to the
customer. For example, in securing a mortgage for a holiday home, a bank
charges 3000 TL in expert costs (expert costs set by the bank), while the actual
cost of the expert come to no more than 600 TL. This is not legitimate. The
financial institution can charge the customer up to 600 TL and no more. If,
regardless of this, the bank charges a greater amount, the customer can reclaim
the excess, even if he agreed to the greater amount at the outset. Lawsuits
taken out in respect of consumer rights are usually much more speedy and
cost-effective, and provide more security to the claimant in the capacity of
the consumer.
