Turkey: The New Bank Cards And Credit Cards Law

Before the enactment of the new Bank Cards and Credit Cards Law No. 5464 ("Law No. 5464"), due to the lack of particular legislation regulating credit cards in Turkey, the relationship among the credit card issuer, member workplaces and cardholders was regulated under various provisions of the Code of Obligations, Law No. 4077 on the Protection of Consumers ("Law No. 4077"), the Communiqué of the Turkish Banking Association on the Professional Classification Recommendation regarding Credit Card Practices No. 924, and the Communiqué of the Turkish Banking Association on the Mandatory Principles to be Followed by Banks During the Consumer Credits Practice. The Banking Regulation and Supervision Agency ("BRSA") stated that "the lack of a unified regulation to solve problems caused by the increasing level of credit card utilization and relations engendered by it in Turkey, necessitated the introduction of a legislation to regulate credit card transactions and parties affected by it." Thus, in order to unify the credit card legislation under a single statute and in line with the "88/590/EEC EU Commission Recommendation Concerning Payment System and in Particular the Relation Between the Cardholder and Card Issuer", Law No. 5464 was enacted on 23 February 2006.


The scope of Law No. 5464 includes organizations and entities that establish a card system, issue cards and enter into merchant agreements as well as merchants and cardholders themselves. However, persons or entities that issue cards or establish a system for the forward sales of goods or services and for tracking accounts payable and accounts receivable solely within their own workplace, or persons or entities that issue cards up to a certain predetermined amount or level without any crediting transaction or without being subject to any account are excluded from the provisions of Law No. 5464. Furthermore, with respect to corporate credit cards that are furnished to merchants, the following provisions of Law No. 5464 are not applicable:

(i) Article 8/2 (Cancellation of the Credit Card in case of Failure in Payment of the Minimum Amount);

(ii) Articles 9 (Limits of Credit Cards);

(iii) Article 12 (Unlawful Use of and Insurance Cover For Cards);

(iv) Article 24 (Conditions of Agreement);

(v) Articles 25 (Amendments to Agreement);

(vi) Article 26 (Interest Calculation); and

(vii) Article 44 (Competent Courts and Authority).

The BRSA as the Regulatory Agency

Law No. 5464 is a detailed piece of legislation, aiming to provide an improved regulatory framework in compliance with EU directives and international standards. Under Law No. 5464, the BRSA is the competent governmental agency to regulate and supervise the credit card sector. Within this context, organizations intending to establish a card system, issue cards, enter into agreements with merchants, exchange information, or engage in clearing and settlement activities are required to obtain a license from the BRSA in order to initiate their activities. In addition, the BRSA is authorized to impose administrative fines, revoke licenses, approve amendments to the articles of association, and approve the transfer of shares exceeding certain thresholds of participating organizations.

The existing organizations other than banks that were operating in the credit card market prior to the enactment of Law No. 5464 are expected to apply and obtain the required licenses from the BRSA within three months following the date of promulgation of the prospective regulation, which is yet to be issued by the BRSA.

Credit Card Agreement

In order to protect the cardholder, Law No. 5464 provides that the relationship between the card issuing organization and the card holders must be governed under a written agreement. The new law further assigns to the BRSA the duty to specify the form and the minimum contents of such agreements.

Moreover, with respect to the credit card agreement, Law No 5464 imposes certain obligations on the card issuing organizations such as to provide detailed information to the cardholder about the use of the card and the provisions of the agreement as well as to notify the proposed amendments to the card holders.

Furthermore, the card issuing organizations are not allowed to set the minimum payable amount in the credit card agreement less than 20% of the outstanding debt.

Provisional Article 4

One of the major aspects of Law No. 5464 is to provide relief to the credit card debtors pursuant to a restructuring mechanism that enables such debtors to benefit from a repayment schedule. Under Provisional Article 4 of Law No. 5464, credit card debtors who have received a payment notice for their debts, against whom an execution proceeding has been initiated as of 1 March 2006 or who have fallen in default by 31 January 2006, will have the right to repay their debts in 18 equal installments together with an accrued interest rate of 18% per annum, provided that they apply in writing to the relevant credit card issuing organization, or to its lawyers, within sixty days and fulfill the other procedural requirements set forth under this provision. If the debts have already become the subject of an execution proceeding, then such amount will also include the court and execution proceeding’s costs and attorney fees.

A major consequence of the restructuring of credit card debts is the suspension of the execution proceedings initiated against the debtor. However, in the event the credit card debtor fails to pay any one of the installments on its due date, all rights and interests granted under the provisional article will be forfeited, and the pending execution proceeding will be resumed together with the applicable current default interest rate.

Interest Rates

The Turkish Central Bank ("TCB") is authorized to fix the maximum contractual and default interest rates under Law No. 5464. As mentioned in the TCB’s press release dated 2 April 2006, the monthly maximum interest rates on credit cards are set by adding a 0.5 point market margin to the weighted average interest rates of the banking sector. The same method is used for determining the maximum default interest rates.

According to Law No. 5464, institutions that issue cards should make necessary adjustments in their interest rate calculations within three months in accordance with the provision of Law No. 5464. Consequently, banks are obligated to adjust their credit card interest rates in accordance with the maximum interest rates mentioned above as of 1 June 2006.

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.

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.