Warning for credit card users: It burns a hole in your pocket just by sitting there! A full 65 billion TL annually...

In Turkey, credit cards continue to be one of the most fundamental financial problems for consumers. Across the country, approximately 65 billion TL in credit card fees are collected by banks every year. Citizens who rely on credit cards for their monthly living expenses face serious financial difficulties due to high interest rates as well as additional fees charged annually under the name of card dues.

Bursa Consumer Association President Sıtkı Yılmaz stated the following on the matter:

"Consumers face many problems with credit cards because the credit card has become a 'life card' in our country. For this reason, despite paying high interest, the fact that banks also demand fees under the name of annual card dues has put our consumers in an even more difficult situation."

DEMANDS GO UNANSWERED

Yılmaz stated that consumers should seek legal support to defend their rights:

"Recently, there are consumers constantly calling our association regarding whether the fees collected for credit cards can be recovered. I regret to state that, in line with the communiqué published by the Central Bank, consumer demands regarding the refund of annual card fees are also being rejected by arbitration committees. If our consumers have demands regarding the refund of credit card fees, it would be much more appropriate for them to apply by receiving legal support from the association."

ISSUES IN LAW AND REGULATION COMPLIANCE

Yılmaz expressed that the issuance of credit cards without consumer requests and the charging of fees do not align with existing consumer laws:

"Fees cannot be charged for credit cards provided to consumers without their request. In other cases, even if there are regulations regarding financial consumers through the regulation and Central Bank communiqué, our view as an association is that, according to Article 4 of the Law on the Protection of Consumers, the communiqués and regulations should be implemented after obtaining the opinion of the ministry in a way that is consistent with the spirit of the law and protects the consumer. We claim that it is not in compliance with the consumer law regarding the protection of the consumer."

BANKS MUST PROVIDE COST TRANSPARENCY

Stating that there are nearly 130 million credit cards in Turkey and that this creates a significant source of income for banks, Yılmaz said that costs should be shared more transparently:

"There are nearly 130 million credit cards in our country. Even if 1 TL was taken from each, it would amount to 130 million TL. When we consider 130 million credit cards and assume the lowest limit is over 500, it means approximately 65 billion TL is collected in annual card fees. As consumer organizations, if banks are going to charge a card fee from the consumer, they can do so while presenting the card cost. We say that the usage period of a credit card is 3 years, so they should take it once every 3 years."

LIMITS ARE NOT DETERMINED ACCORDING TO ACTUAL INCOME

Yılmaz also emphasized that banks do not take consumers' actual income into account when determining credit card limits:

"When a consumer requests a credit card from banks, while banks are at least required to inform the consumer about a free card, according to the complaints we receive from many consumers, we see that they are unaware of free credit cards and are not informed about this. These consumers state that fees are charged on credit cards with dues. When a credit card is obtained, it is seen that many consumers have more than one credit card. These cards do not have limits determined based on their actual annual income. According to the article of the Bank and Credit Cards Law, a consumer cannot be given a limit exceeding 2 times their actual income in the first year, and 4 times in the second year."

CONSUMER RIGHTS MUST BE PROTECTED

Yılmaz also stated that banks increase limits without the consumer's request:

"How can they explain the 10 cards in a consumer's hand? For this reason, just to 'fleece' the consumer, so to speak, they increase the limits of the cards they want and in the way they want, taking money from the consumer that they do not deserve. I receive messages from banks every year on my own credit card saying they have increased my limit without my request, and I object to it. However, many consumers are forced to pay these fees because they are dependent on them to survive. For this reason, the consumer must be protected."

News Source: İHA