Turkey: Recently Published Regulation Sets The Legal Standards For Consumer Loan Agreements

Last Updated: 10 June 2015
Article by Oğuz Akal

The Regulation on Consumer Loan Agreements was published in the Official Gazette dated May 22, 2015 ("Regulation"). Legal standards applicable to consumer loan agreements ("Agreement") have been regulated in detail under the Regulation.

However, it is important to note that the Regulation will not be applicable to:

  • Housing finance agreements,
  • Overdraft account agreements requiring re-payment of the loan within 30 days, and
  • Non-cash loan agreements (e.g. check, letter of guarantee

In summary, the Regulation intends to provide protection to the consumers against their lenders; banks and financial institutions.

In the interest of protecting the consumers, the Regulation provides that lenders shall have the obligation of informing their consumers by means of providing the consumers with information forms with respect to the consumer loan which they will receive prior to the execution of the Agreement. These information forms shall be in at least 12 font and the language used therein shall be clear, simple and readable. In order to be valid, a copy of these forms shall be provided to the consumer in writing or through a permanent data storage unit. Permanent data storage unit has been defined under the Regulation as:

"all kinds of instruments and environments including short messages, electronic mail, internet, discs, CD's, DVD's, memory cards providing sufficient storage of the information sent by or to the consumer allowing the information to be inspected for a reasonable time period relevant to the purpose of such information and copying of the information without any change and enabling access to the information"

Information forms provided by the lenders shall include all items listed under the Regulation.

It is important to mention that the obligation of the lenders to provide information forms to the consumers is applicable to both fixed term Agreements and Agreements executed for an indefinite period.

The Regulation also provides an exemption to this obligation. In this respect, suppliers or service providers who act as a loan intermediary in its capacity as assistant, are not obliged to provide these information forms to the consumers. This however, does not prejudice the lenders' obligation to provide such information forms.

Legal form of the Agreements has been strictly regulated under the Regulation. Accordingly, Agreements (except for distance contracts) shall be executed in writing in order to be valid. The lenders cannot assert claims against the consumers regarding invalidity of Agreements resulting from non-compliance with the mandatory legal form set forth under the Regulation. Similar to the information forms, Agreements shall also be in at least 12 font and the language used therein shall be clear, simple and readable. The mandatory items which should be included under both fixed term Agreements and Agreements executed for an indefinite period have been listed under the Regulation.

There is a distinction between fixed term Agreements and Agreements executed for an indefinite period in terms of amending the terms of these agreements. According to the Regulation, terms under fixed term Agreements cannot be amended to the detriment of the consumers.

On the other hand, contractual interest rates determined under Agreements executed for an indefinite period can be amended. However, such amendment shall be notified to the consumer in writing or through the permanent data storage unit. In case of an increase, the increased contractual interest rates shall not be applicable retrospectively. The consumer shall not be effected by such increase in the contractual interest rate if the consumer has fully paid the debt and stopped using the consumer loan within at most 60 days, starting from the date when the consumer has been notified of the increase in the contractual interest rate.

If the lender intends to make any amendments to the Agreement executed for an indefinite period other than the contractual interest rate, then such change shall be notified to the consumer in writing or through the permanent data storage unit within 30 days prior to the effective date of such amendments. In this case, the consumer shall have the right to terminate the Agreement if it does not accept such amendment.

The Regulation also includes provisions regarding pre-payments, interim payments and events of default which are quite important in terms of the both lenders and consumers.

In this regard, the Regulation provides that consumers can make pre-payment(s) for undue installments or can pay the loan debt entirely or partially before it is due. In such case, lenders are obliged to provide their consumers with the discounts mentioned under the Regulation.

In connection with the paragraph above, the Regulation considers payments of any amounts undue as an interim payment provided that such payment is not less than a single installment amount determined under the payment plan.

If the consumer makes an interim payment, then the lender will collect the (i) contractual interest, (ii) interest over the outstanding principal debt which will be calculated by taking into account the number of days lapsed starting from the previous installment and (iii) taxes, levies and duties to be calculated over the interest mentioned under item (ii). The remaining amount shall be deducted from the principal debt and a new payment plan will be prepared.

In the event that the consumer is in default of payment of the installments of the consumer loan, then the lender may exercise its right to request payment of the entire debt amount provided that (i) the lender has reserved its right to request such payment under the Agreement, (ii) the consumer has defaulted in the payment of at least two consecutive installments and (iii) the lender has issued a maturity warning to the consumer by providing 30 days to the consumer to remedy the situation.

The Regulation also includes a provision which grants the consumer a right of withdrawal from the Agreement. In this respect, the consumer shall have the right to withdraw from the Agreement within 14 days starting from the date of its execution without any need to provide any reasoning, and without having to pay any penalties. However, if the date when a copy of the Agreement has been provided to the consumer either in writing or through the permanent data storage unit is later than the execution date of the Agreement, then the date when the Agreement was provided to the consumer shall be taken into account whilst calculating the abovementioned 14 day period instead of the execution date. The lender shall be obliged to prove that the consumer was informed that it has the right to withdraw from the Agreement.

Termination of the Agreements have been regulated in detail by the Regulation. However, the Regulation only includes provisions regarding termination of Agreements executed for an indefinite period. The Regulation is actually silent in relation to termination of fixed term Agreements.

According to the Regulation, the consumer can terminate the Agreement at any time without making any payments to the lender by providing a notice in writing or through the permanent data storage unit if the Agreement does not include any period regarding termination notices. Should the Agreement include a period for termination notices, such period shall not exceed 1 month.

The lender shall also have a right to terminate the Agreement by providing a 2 month prior notice in writing or through the permanent data storage unit provided that the Agreement grants a right of termination to the lender.

Prior to the Regulation, lenders were requiring the consumers to obtain insurances against death, injury and other events which may endanger repayment of the loan.

However, with the passing of the Regulation, lenders are prohibited from requesting their consumers to obtain insurance cover in relation to the loan without the explicit request of the consumer submitted in writing or through the permanent data storage unit. In case the consumer decides to obtain an insurance policy, then the lenders must accept the cover provided by the insurance company chosen by the consumer.

Another important provision introduced under the Regulation is in relation to sureties provided by both consumers and lenders. The Regulation states that all personal guarantees obtained as security for the performance of the consumer's obligations under the Agreement shall be considered as an ordinary guarantee.

Finally, the Regulation will enter into force on November 22, 2015 which should give enough time to the lenders to amend the legal form of their existing Agreements in compliance with the Regulation.

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.

Oğuz Akal
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, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
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 you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.