This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at Tüketici Kredisi: Erken Ödeme, Cayma Hakkı ve Masraflar.
Two rights stand out in consumer credit: withdrawal within fourteen days of the agreement, and a reduction in interest on early repayment (Articles 24 and 27 of the Consumer Protection Act). On early repayment the lender must give the reduction due on the remaining principal. Fees such as an arrangement fee may be charged only where they are necessary and documented.
The agreement signed for a consumer loan is long and nobody reads it. Yet Act no. 6502 gives the consumer rights that cannot be waived.
This article covers the reduction on early repayment, the fourteen-day right of withdrawal, and which fees can be reclaimed.
Withdrawing from the Agreement
Under Article 24 the consumer may withdraw from a consumer credit agreement within fourteen days, without giving a reason and without paying a penalty.
Notice of withdrawal must be given to the lender before the period expires, in writing or on a durable medium.
On withdrawal the consumer repays the principal, together with the contractual interest accrued from the date the credit was drawn to the date of repayment, within thirty days of sending the notice at the latest. If payment is not made within that period the withdrawal is treated as not having been made.
Nothing beyond that interest may be charged — except sums already paid to public bodies or third parties.
The Reduction on Early Repayment
Article 27 is clear: the consumer may pay one or more instalments before they fall due, or repay the whole debt early. In those cases the lender is obliged to give the reduction due on all interest and other cost elements according to the amount repaid early.
That is a statutory obligation, not a matter for the bank's discretion. Put the request for the reduction in writing when you ask to settle.
On fixed-rate credit an early repayment charge may be made, but it is limited by the legislation and capped by reference to the remaining term.
In housing finance agreements the charge cannot exceed one per cent of the amount repaid early where the remaining term is thirty-six months or less, or two per cent where it is longer.
When settling, ask the bank for the settlement statement and check item by item whether the reduction was applied.
Which Fees Can Be Reclaimed
Article 4 requires that information about every fee and charge the consumer may be asked for appear in the agreement. A fee not set out in the agreement cannot be charged.
The fees banks may collect are limited to the products and services listed in the relevant regulations. Items outside that scope, or not shown in the agreement, must be refunded.
The control of unfair terms also applies: a term included without being negotiated with the consumer that causes an imbalance in the parties' rights and obligations contrary to good faith is an unfair term, and does not bind the consumer.
To reclaim, apply to the bank in writing first; if that produces nothing, go to the consumer arbitration committee or the consumer court, according to the monetary threshold.
| Fee | Position |
|---|---|
| Arrangement fee | Refundable unless necessary and documented |
| Credit assessment or allocation fee | Subject to the same control |
| Valuation fee (housing credit) | May be charged where a service was actually provided |
| Life insurance premium that was not required | Refundable without the consumer's express request |
| No interest reduction given on early repayment | Unlawful; the difference can be claimed |
| Account maintenance fee on an account tied to the credit | Contested; worth claiming |
Apply to the bank in writing first; if nothing comes of it, go to the consumer arbitration committee or the consumer court.
Is Credit Insurance Compulsory?
Article 29 is unambiguous: no insurance connected with the credit may be taken out without the consumer's express request.
And where the consumer does want insurance, cover obtained from the insurer of their choice must be accepted by the lender.
So the bank cannot insist on its own partner insurer, and cannot make insurance a precondition of the credit.
If insurance was taken out without your request, you can require it to be cancelled and the premiums refunded. Where the credit is repaid early, a refund of the premium for the remaining period also arises.
Linked Credit
Credit given for the purchase of particular goods or a particular service is linked credit (Article 30) — credit used to finance a house or a car, for example.
Where the goods or the service are not delivered at all or not delivered properly, the seller and the lender are jointly and severally liable to the consumer — which is why paying with linked credit gives more protection than paying cash.
On early repayment the reduction is a statutory obligation, not a favour. Ask for it in writing, take the settlement statement, and check the figures item by item. And no insurance may be taken out without your express request.
Frequently Asked Questions
Can I get out of a loan agreement I just signed?
Yes, within fourteen days, without a reason and without penalty. You repay the principal with the contractual interest accrued, within thirty days of the notice.
Does the bank have to reduce the interest if I repay early?
Yes. Article 27 obliges the lender to give the reduction due on all interest and other cost elements. Ask in writing and check the settlement statement.
Can they charge me for repaying early?
On fixed-rate credit, within limits. In housing finance the charge cannot exceed one per cent where the remaining term is thirty-six months or less, or two per cent where it is longer.
Which fees can I reclaim?
Any fee not set out in the agreement, anything outside the permitted list, unnecessary or undocumented charges, and insurance premiums you never asked for.
Must I take the bank's insurance?
No. No insurance may be taken out without your express request, and if you do want it, cover from the insurer of your choice must be accepted.