Installment payments down 16 pct since credit card regulation implemented

The amount of credit card purchases paid for in installments has decreased by 15.8 percent since Feb. 1, when credit card regulations were introduced, to a total of TL 40.3 billion, according to a weekly bulletin released by the Banking Regulation and Supervision Agency (BDDK) on Monday.

According to the same data, personal credit card purchases dropped by 7.2 percent since February to a total of TL 78.8 billion as of April 4.

As of Feb. 1, the BDDK has banned installment plans for food, gasoline, telecommunications and jewelry purchases and limited the option to nine installments for all other purchases in the credit card regulations.

The regulations also state that mortgages cannot exceed 75 percent of the value of the house in question; for cars valued at less than TL 50,000, the total to be repaid cannot exceed 70 percent of the car’s value. According to the regulations, non-mortgage consumer loans are limited to a period of 36 months and car loans cannot exceed 48 installments. The regulation is also expected to limit installments for online sales as well.

The bulletin also revealed that the amount of consumer loans had increased by 1.9 percent since December 2013 as of April 4 and totaled TL 252.8 billion.

SOURCE: TODAY’S ZAMAN