Regarding the Consumer Credit (Amendment) Bill

Dear Member,

The Consumer Credit (Amendment) Bill (Bill No: 424/5/2026) was published in the Official Gazette No. 139, dated July 27, 2026.

The main changes proposed in the bill are as follows:

• Insurance and certification fees are excluded from the calculations of the total cost of the loan and the annual percentage rate. However, interest, commissions, taxes, fees, and similar legal obligations and other charges will continue to be included in the calculation.
• The definition of “organization” has been revised to explicitly include banks and financial leasing and financing companies.
• While the option to set fixed or variable interest rates on fixed-term consumer loans is retained, institutions are now required to offer consumers a fixed-rate loan option.
• The regulations regarding which institution will receive the revenue from administrative fines are being revised.

General Justification of the Bill

The rationale for the bill states that because insurance costs are not priced by banks and vary from person to person, consumers are unable to properly compare loan offers. Therefore, the aim is to exclude insurance costs from the loan cost calculation and to make it mandatory for consumers to be offered a fixed-interest loan option. Furthermore, Law No. 43/2020 foresees the updating of existing legislation, taking into account that financing companies will also be able to provide consumer loans.

Individuals and legal entities are requested to send their opinions and suggestions, provided they are directly related to the content of the Bill, to ozsenanis@ktto.net by the end of business on August 10, 2026.

Please click here for the relevant Bill.

Best regards

Turkish Cypriot Chamber of Commerce