Türkiye faces surge in debt enforcement with over 1M affected

The number of individuals facing legal enforcement in Türkiye by banks due to unpaid credit card and loan debts reached 1.06 million in the first half of the year.

According to Turkish media outlet Sozcu, main opposition Republican People’s Party (CHP) Manisa Deputy Bekir Basevirgen highlighted that, between January and July 2024, 642,159 people were placed under enforcement for failing to repay personal loans, while 784,374 others were pursued for outstanding credit card debts.

It is noted that a significant rise compared to the same period in 2023, with 155,812 more individuals falling under enforcement for personal loan debts, and an additional 322,878 people for credit card debts.

When counted individually, a total of 1,063,379 people have been subjected to legal action for unpaid credit and loan obligations.

Sharp increase in debts

A dramatic rise in non-performing debts has also been reported since the start of the year. Credit card debt defaults increased by 167%, while non-performing personal loans rose by 50%.

According to a Turkish central bank report, asset management companies are now handling ₺47 billion ($1.38 billion) in defaulted consumer loans.

More than 3M face legal actions

As of the end of July, 2.45 million individuals remained under enforcement by banks and financial institutions for outstanding debts, CHP deputy said. He added that more than 2 million people have also been placed under enforcement after their debts were sold to asset management companies. When counted as individual cases, the total number of people facing legal action for unpaid debts has reached 3.85 million.