Expected measures for credit card usage! Here are the precautions on the table...

Expectations for regulations on credit cards are rising. It is unknown what the regulation will look like, but financial circles are focusing on certain alternatives. A limitation on credit card installments is also among the topics being discussed. Here are the formulas on the table...

Fatih Karahan, who was appointed Governor of the Central Bank of the Republic of Turkey following Hafize Gaye Erkan, signaled at the Inflation Report meeting that regulations would be made regarding credit cards. Karahan stated, "We have a few ideas on this matter, and our work is ongoing. We will share it with the public when it reaches a certain stage."

Following Karahan's statement, while regulations on credit cards are expected, no official announcement has yet been made regarding what the regulation will entail.

According to a report by NTV, the view in financial circles is that the upcoming measures should be aimed at restricting luxury consumption rather than essential expenditures.

MEASURES ON THE TABLE

Some of the measures that may be introduced are listed as follows:

• Installment applications for cards could be abolished
• Minimum payment amounts could be increased
• Card limits could be lowered
• Credit card interest rates could be increased
• Additional measures could be introduced for those with poor payment habits
• Restrictions could be placed on high-limit spending
• Limits could be imposed on credit card spending based on luxury consumption

WHAT DO EXPERTS SAY?

Experts state that the upcoming measures should be aimed at restricting luxury consumption rather than essential spending.

Garanti BBVA General Manager Recep Baştuğ, "There is a possibility that a measure regarding credit cards will be introduced. However, we do not know what form this will take. Therefore, we do not know if it will be an installment limit or something else. We are also waiting with curiosity," he said.

İş Bankası General Manager Hakan Aran also stated in a recent statement that limits on credit cards should be applied to luxury consumption. Aran said, "It is necessary to keep credit card limits and expenditures up to 20,000 liras outside of these measures."

"GRADUAL TRANSITION" PROPOSAL

Academics and consumer associations, on the other hand, "gradual transition" made the suggestion. Marmara University Faculty Member Prof. Dr. Burak Arzova, "If an installment limitation is to be implemented, this limitation should prioritize luxury goods groups. In the meantime, the installment limitation to be applied should not be a complete removal of installments or a sudden drop from, for example, 8-9 installments to 3, but rather a reduction in the number of installments through a gradual transition. 8-9 installments should first be reduced to 6-7, and then, if necessary, another reduction should be made at a later time with prior notice." he said.

News Source: 12punto