Business

Legal regulation to companies that provide interest-free housing and vehicles

In order for savings finance companies to operate, their minimum paid-in capital must be ₺100 million, and their obligations such as corporate structure, risk management, and information technology infrastructure must be fulfilled.

The law proposal, which includes the control of savings finance companies regarding the acquisition of interest-free housing and vehicles, was submitted to the Presidency of the Assembly.

According to the information obtained by the AA correspondent, it is aimed to amend Law No. 6361 on Financial Leasing, Factoring and Financing Companies to include companies engaged in interest-free home and vehicle acquisition under legal audits and regulations.

The supervision and regulation of companies called savings finance companies is given to the Banking Regulation and Supervision Agency (BRSA). Savings financing activity; is defined as obtaining the right to use housing or vehicle financing in exchange for saving for a certain period of time.

In order to operate as a savings finance company, it is mandatory to obtain establishment and operating permits (licenses) and to fulfill the obligations such as ₺100 million minimum paid-up capital, corporate structure, risk management and information technology infrastructure.

In order for companies currently operating to continue their activities, they must apply to the BRSA and be successful in the adjustment process foreseen in order to comply with legal obligations.

Legal obligations to protect customer rights are determined

For companies that cannot obtain a license or whose operating license has been canceled, additional liquidation provisions are drawn up to protect the rights of savers, as well as general provisions.

With the relevant regulation, legal obligations to protect customer rights are determined. In this context, first of all, customers’ rights to take back their savings and use financing are secured.

There is no public guarantee or insurance mechanism for the savings invested in savings finance companies and no repayment guarantee is provided by the state in case of liquidation of companies.

Standard rates and limitations are imposed on the management of savings fund pools, which companies must constantly comply with. It is stipulated to keep such accounts separate from company accounts.

The definition of the savings finance contract and the minimum elements that should be included in the contract are determined. It is compulsory to carry out the savings financing activity according to the principles and principles of interest-free finance.

In order to ensure the soundness and continuity of the savings finance system, companies are obliged to keep a certain part of the savings they collect and the income they generate for prudent purposes.

Source: AA / Translated by Irem Yildiz

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