Who can collect debt in Turkey?

January 29, 2020 Gökhan Cindemir 0 Comments

who can collect debt in Turkey?
contact cindemir@cindemir.av.tr

This article is written to inform the public and to prevent them to involve a crime under Turkish legislation. It is important to inform the potential creditors not to involve any contractual relationship with collection agencies, collection companies stating that they can collect debt in Turkey. Collecting debt in Turkey is only possible by Turkish Attorneys under the law. Other possibilities are prohibited. There are many foreign based companies claiming that they can collect debt in Turkey and these claims fall into criminal liability in Turkey.

No Cure- No Pay slogans are all prohibited under Turkish Attorney Law. Commercial activities and claiming that there will be no payment will be requested is totally crime. It is also not possible to transfer the credit, buying credit and asking for collection on behalf of company in case that the company’s main activity became collection. This right is uniquely belong to Turkish attorneys. Turkish lawyers cannot get any case by using any commissioner.

Offering an attorney commission in exchange for personal interest Article 48 of Turkish Attorney Law Persons who mediate in soliciting commission for an attorney in exchange for a fee or any kind of gain promised or given by the attorney or the client,
and attorneys who resort to the services of an agent will be punished with imprisonment from six months to one year.
The imprisonment sentence may not be less than one year in the event the perpetrators are public servants.

So those companies claim that they can collect debt in Turkey commits crime under Turkish Law. Companies get the client and by the assistance of a Turkish lawyer , they collect the debt. It is clear under the law that it is a crime in Turkey.

Scope of the attorneyship contract Article 163 – <Amended as per Article 4667/76 dated 2 May 2001> The attorneyship contract is drawn up at liberty. The attorneyship contract must cover a specific legal service and an amount or a value. Unwritten contracts will be proven in accordance with general provisions.Attorneyship fee Article 164 – <Amended as per Article 4667/77 dated 2 May 2001> The attorneyship fee represents the amount or value that the legal service is worth. The attorneyship fee to be imposed on the opposite party at the end of the suit depending on the decision and the tariff belongs to the attorney. This fee may not be traded or deducted due to the client being in debt; nor may it be attached.

As can be seen from the article, the companies which claims debt collection in Turkey is possible without any payment as they state “no cure – no payment” are not relevant to Turkish law. Foreign creditors must be aware of the responsibility to contact with these type of companies instead of Turkish lawyer. These companies have no any legal background in Turkey. It is not possible to establish a debt collection firm in Turkey. It is a crime and prohibited.

 

 

Who can collect debt in Turkey? was last modified: February 1st, 2020 by Gökhan Cindemir