Installment Rules Are Changing for Technological Products

The authority to set rules for installment purchases was transferred from BRSA to the Ministry of Commerce. New installment arrangements may come for phones and computers.

An important turning point has been reached in retail trade in installment purchases made with credit cards and other payment methods. With the new regulation amendment published in the Official Gazette, the authority to determine the limits regarding the number of installments and their maturities, which have been determined by the Banking Regulation and Supervision Agency (BDDK) to date, was transferred to the Ministry of Commerce. This step may open a new page in installment restrictions that have been applied for a long time in consumer electronics, especially smartphones, computers and tablets.

Sales with Promissory Notes in Hand Are Also Included in the Scope of Audit

The regulation does not only cover classic installment payments made by credit card. The Ministry of Commerce will also be able to impose direct rules on sales made in cash installments and against promissory notes, which are among the alternative payment models in the retail sector. Thus, unregistered futures transactions in the market and uncontrolled bill practices that put consumers in a difficult situation will be regulated from a single center.

The Ministry has not made an instant update on the number of installments at this stage. However, in line with the authority given, sector-based analyzes can be made and the increase or limitation of specific maturities for product groups can be implemented directly by the decision of the Ministry. The new decisions to be taken will come into force as soon as they are announced on the official website of the Ministry of Commerce, instead of the BRSA board decisions.

All Eyes in the Technology World Turn to Phone and Computer Futures

Strict installment limits, which have been applied for a long time, especially in technology purchases, directly affect consumers' purchasing habits. In the current situation, while the possibility of credit card installments is completely closed for new mobile phones, consumers mostly turn to shopping loans. It is expected that one of the first topics that the Ministry will discuss will be these scales, which have become outdated in the face of increasing exchange rates and device prices.

Current Installment and Maturity Limits Table

Product Group Credit Card Installment Shopping Credit Limit Zero Mobile Phone No Installment 40,000 TL and below: 12 months

Above 40,000 TL: 3 months Refurbished Phone 12 Months 50,000 TL and below: 12 months

Above 50,000 TL: 3 months Television Below 5,000 TL: 9 Months

5,000 TL and above: 4 Months 36 Months Tablet 6 Months 6 Months Computer 12 Months 12 Months Electronic Goods (Sound System, Camera, etc.) 4 Months 36 Months White Goods and Electrical Appliances 9 Months 36 Months

What Could New Regulation Change in the Market?

The Ministry of Commerce's direct authority paves the way for a faster response to demands from the field. In particular, the credit scale of 40 thousand TL on the telephone side and the threshold levels of 5 thousand TL on television are far behind today's market conditions. It is considered as a strong possibility that the Ministry will meet with industry representatives in the coming days and reintroduce credit card installments in technology products and stretch credit maturity limits according to current prices.