Turkey To Regulate Installment Sales Agreements

Recent development

Pursuant to the new Consumer Protection Law, on January 14, 2015, the Ministry of Customs and Trade issued its Regulation on Installment Sales Agreement (the "Regulation") setting out the legal framework for installment sales agreements. The Regulation sets forth content requirements and regulates the consumer's right to cancel and events of default.

The Regulation applies to:

• consumer installment sales agreements, and
• financial leasing agreements where the consumers acquire ownership at the end of the lease.

The Regulation does not apply to prepaid sale agreements where the payment term is more than a year or indefinite, and the seller delivers the movable property to the consumer only after final payment.