Pursuant to the new Consumer Protection Law, on January 14,
2015, the Ministry of Customs and Trade issued its Regulation on
Installment Sales Agreement (the
"Regulation") setting out the legal
framework for installment sales agreements. The Regulation sets
forth content requirements and regulates the consumer's right
to cancel and events of default.
The Regulation applies to:
consumer installment sales agreements, and
financial leasing agreements where the consumers acquire
ownership at the end of the lease.
The Regulation does not apply to prepaid sale agreements where
the payment term is more than a year or indefinite, and the seller
delivers the movable property to the consumer only after final
Additionally, credit card purchases are not subject to the
What the Regulation says
Content of the agreement
Installment sales agreements must include:
The total cash price of the goods or services, inclusive of
taxes in TRY,
The total installment sales price of the goods or services,
inclusive of taxes in TRY,
The conditions, time frame and procedure for cancellation,
The payment schedule,
Information on prepayment rights and the right to a pro rata
discount on interest and commissions in the event of a full
The amount of interest to be charged, the annual interest rate,
and default interest, and
The consequences of default.
The consumer is entitled to cancel the agreement within seven
days, without cause and without penalty; he/she has only to inform
the seller or provider of the decision in writing or on a permanent
data carrier, e.g., email.
Actions to consider
Companies that provide goods or services to consumers through
installment sales agreements should take the necessary steps to
bring their activities into compliance with the Regulation.
Baker & McKenzie
At Baker & McKenzie, we provide sophisticated advice on
consumer law matters. In addition to advisory services, we
represent our clients before consumer arbitral tribunal and
consumer courts, and provide tailor-made consumer law trainings.
Please contact us if you would like more information on how to
comply with these requirements.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On 28 July 2016, the Court of Justice of the European Union ruled that a standard choice of law clause in favour of the law of the EU Member State in which the seller or supplier is established, is unfair.
Two recent cases serve as useful reminders of the principles involved in relation to fitness for purpose in the context of the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
Some comments from our readers The articles are extremely timely and highly applicable I often find critical information not available elsewhere As in-house counsel, Mondaqs service is of great value
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think youve read our Disclaimer).