Banks may close credit cards used for purchasing foreign currency, gold, or crypto assets

Banks have warned their customers that credit cards used for purchasing gold, foreign currency, and cryptocurrencies may be closed. While regulations are being implemented for housing and automobile loans, credit card spending continues to rise.

As part of the fight against inflation, while regulations on limits and the number of installments are being implemented to reduce credit card usage, the banks' new measure has been to restrict the areas where credit cards can be used. In the warning issued to credit card customers, it was stated that cards could be closed due to the purchase of foreign currency, gold, and crypto assets with the credit card, the closing of loans that have not yet matured, or "transfers without a reasonable justification."

According to data from the Banking Regulation and Supervision Agency (BDDK), the volume of individual credit cards was recorded at 1 trillion 172 billion lira as of January 19, 2024. In the same period last year, this amount was at the level of 459 billion lira, which indicates a 155% annual increase in individual credit card volume.

Reducing individual spending and credit card usage has been set as a priority target within the scope of the fight against inflation. In this direction, a series of regulations regarding credit cards have been put into effect.

According to the report by Mithat Yurdakul from Milliyet, banks have tightened procedures for credit card limits that were previously easily increased or raised in line with customer requests. Additionally, installment restrictions have been introduced for certain expenditures abroad.

It is noted that regulations regarding credit cards are also included in economic documents. In the 2024 Presidential Annual Program, it was stated that the installment periods for expenditures and cash withdrawals made with credit cards would be analyzed and additional measures would be taken if necessary. The 2024-2026 Medium-Term Program also emphasized that credit card usage would be reorganized according to international standards.

Within the scope of the latest regulation, banks have switched to a new practice to prevent credit cards from being used for purposes other than basic needs. In the card statements sent by some banks to their customers, the warning was made: "Your card may be closed due to transactions such as purchasing foreign currency, gold, or crypto assets with your credit card, paying off loans that have not yet matured, transfers without a reasonable justification, transactions exceeding the cash withdrawal limit, and transactions aimed at moving money out of the system."

While no slowdown in credit card usage has been observed despite the interest rate hikes by the Central Bank, the goal is to minimize this, especially in luxury and investment-category spending. Banking sources state that new regulations such as adjustments to credit card interest rates, installment restrictions, or limitations on spending limits may come to the agenda. Steps may be taken to differentiate credit card usage from essential expenditures.

News Source: 12punto