New regulation on credit cards is on the way! Restrictions are coming...

The Central Bank of the Republic of Turkey (TCMB) has kept monthly credit card interest rates steady at 3.66 percent since November. Additionally, monthly interest rates for consumer loans range between 3.79 percent and 4.50 percent.

Despite high interest rates, inflation has not decreased, and citizens have turned to credit cards to cover their expenses.

According to a report by Sözcü, credit card spending reached 240 billion liras in the week of February 2, marking a 17 percent increase on a weekly basis. Citizens' total credit card debt to banks rose to 1 trillion 247 billion liras in the same week.

SIGNAL FOR REGULATION FROM ECONOMIC MANAGEMENT

Minister of Treasury and Finance Mehmet Şimşek and Banks Association President Alparslan Çakar, followed by the new Central Bank Governor Fatih Karahan, have all signaled that regulations on credit cards are coming. Karahan stated this week that they are monitoring the rise in credit card spending and are preparing measures regarding this issue.

UPCOMING CREDIT CARD REGULATIONS

According to reports from behind the scenes, several formulas are on the table regarding credit cards. The first option is said to be an increase in the minimum payment amount, which has not been changed since June 2022.

There is also talk that restrictions could be placed on credit card limits. Furthermore, the implementation of installment limitations on cards is among the information circulating. Additionally, the Financial Stability Committee met yesterday under the heading of consumer loans.

News Source: 12punto