Restructuring was not the solution: Threat of foreclosure for millions!

Millions of citizens looking to restructure their individual loan and credit card debts have failed to see their expectations met, despite the regulation expanded by the Banking Regulation and Supervision Agency (BRSA). Leaving the implementation to the discretion of the banks has resulted in most applicants receiving negative responses. Many individuals who applied for restructuring, particularly those who are able to make minimum payments on their credit card debt, report that their applications have been rejected.

DEBTS ARE RISING, RESTRUCTURING WAS NOT THE SOLUTION

The BRSA's new regulation had paved the way for restructuring debts for up to 48 months. However, the expected benefit has not been realized for consumers who are unable to pay their debts partially or in full, or who have delayed interest or principal payments. According to data, while non-performing loans in individual credit are expected to reach 211 billion 749 million Turkish Lira as of June 2025, applications made to restructure these debts are largely resulting in negative outcomes.

BANKS' SLOW IMPLEMENTATION EXACERBATES THE PROBLEM

Most debtors requesting restructuring are facing difficulties in their negotiations with banks. It is reported that the implementation varies from bank to bank, particularly because the regulation is left to the banks' own discretion. Applications are mostly rejected, and in some cases, the proposed payment plans are far beyond the debtors' ability to pay.

CALL FOR A NEW LAW FROM THE CONSUMER UNION FEDERATION

Mehmet Bülent Deniz, Chairman of the Consumer Union Federation (TBF), stated that the current regulation is insufficient and argued that a new law must be passed by the Grand National Assembly of Turkey (TBMM) to provide a solution. Deniz said, "Most of those applying are debtors who have already fallen into legal proceedings. Banks, however, are not taking them into account. Just as the restructuring in September failed, this one will also end up fruitless." Deniz proposed, as a solution, the introduction of a restructuring option for up to 60 months with an annual interest rate of 30 percent or the inflation rate. He warned, "Otherwise, bailiffs will be knocking on the doors of 4.5 million homes."

HOW MUCH INTEREST WILL A CITIZEN PAY?

Under the current regulation, a citizen who restructures a 100,000 lira personal loan debt with a 48-month maturity will make monthly payments of 4,752 lira. In this scenario, the total payment amount will reach 228,096 lira, with the interest amount totaling 128,000 lira. While citizens attempt to pay off their debts through long-term payment plans, the amount they repay ends up being far higher than their initial loan debt due to high interest rates.